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CBN Retains Benchmark Interest Rate At 14%

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By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN) has left interest rates unchanged contrary to expectations of some Nigerians.

At the end of its two-day Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday, November 22, 2016, the apex bank announced that all key indicators remain the same.

Briefing newsmen after the meeting, CBN Governor, Mr Godwin Emefiele, disclosed that Monetary Policy Rate (MPR) is still 14 percent, while the Cash Reserve Ratio (CRR) remains at 22.50 percent and the Liquidity Ratio at 30 percent.

According to Mr Emefiele, retaining all the rates was best for the economy at the moment.

The CBN boss said lowering the rates would not do the country’s economy any good.

Nigeria is presently still battling with recession and efforts are being made by the Federal Government to reflate it, including borrowing money to put down infrastructure.

It would be recalled that on Monday, the National Bureau of Statistics (NBS) disclosed that Nigeria’s economy shrank by 2.24 percent in the third quarter of 2016.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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