Aisha Ahmad, Edward Adamu, and the two other newly confirmed members of the monetary policy committee of the Central Bank of Nigeria, have voted to retain the record-high benchmark interest rate at 14 percent.
According to Godwin Emefiele, who addressed a press conference in Abuja on Wednesday, the MPC unanimously voted to retain key rates.
“The committee noted that loosening will strengthen the outlook for growth by stimulating domestic aggregate demand through reduced cost of borrowing. This may, however, lead to a rise in consumer prices, generating exchange rate pressure on the currency in the process” Emefiele said.
“The committee also believes that loosening could worsen the current account balance through increased importation.
“On the argument to hold, the committee believes that key variables have continued to evolve in line with the current stance of macroeconomic policies, and should be allowed more time to fully manifest.
“In consideration of the foregoing, the committee decided unanimously by a vote of all members present, to retain monetary policy rate (MPR) at 14 percent, alongside all other policy parameters.” (The Cable )
