CBN’s Monetary Policy Committee raises benchmark interest rate

TVC E, NEWS – The Monetary Policy Committee of the Central Bank of Nigeria has raised the benchmark interest rate from 11 to 12 percent.

The committee took this unexpected decision at its meeting today in Abuja.

The bank also raised the cash reserve ratio (CRR) for commercial banks to 22.5 percent from 20 percent and it held the liquidity ratio at 30 percent.

Governor of the bank, Godwin Emefiele told reporters after the meeting that the central bank would keep the foreign exchange rate stable despite a sharp fall of the Naira on the parallel market due to shortages of foreign currency.

Analysts had expected the central bank to hold interest rates steady at 11 percent.