CBN holds benchmark interest rate at 12.5%
The Central bank of Nigeria (CBN) on Monday held its benchmark lending rate at 12.5 percent, say the decision was informed by the need to assess the impact of the previous cut in the rate.
The CBN governor, Godwin Emefiele, who briefed the media at the end of the Monetary Policy Committee (MPC) the central bank governor said on Monday. said eight of the 10 monetary policy committee members voted to retain the rate and two voted for a rate cut.
“The committee was mindful of the cut in policy rate at the last MPC (committee) meeting and the need to allow time for its effect to permeate the economy,” said Emefiele.
Emefiele said the rate cut was having a “positive impact” as credit growth had increased significantly in the economy.
The regulatory bank had unexpectedly cut the interest rate by 100 basis points, to 12.5 percent from 13.5 percent, in May. It was the largest rate cut since 2015.