LAGOS, April 4 (Xinhua) -- Nigeria on Wednesday said it has retained the Monetary Policy Rate at 14 percent due to persistent uncertain economic conditions and high inflation.
Speaking to reporters in Abuja, Nigeria's capital, Godwin Emefiele, the Central Bank of Nigeria (CBN) Governor, said the nation's economic outlook for 2018 remained positive but hinged on the early passage and execution of the 2018 budget.
Emefiele, who spoke at the end of the first Monetary Policy Committee (MPC) meeting for 2018, added that the country's economic growth was based on improved security, foreign exchange market stability as well as favorable crude oil prices.
He said the MPC members unanimously voted to retain the existing MPR and other monetary indices.
According to him, the Committee was of the view that further tightening would strengthen the impact of monetary policy on inflation with complimentary effects on capital flows and exchange rate stability.
He added that the committee was also of the view that loosening would strengthen the outlook for growth by stimulating aggregate demand through reduced cost of borrowing.
Emefiele said the committee observed with satisfaction, the continued rise in the external reserves but urged the CBN not to relent in building buffers against future price downturns.
The apex bank chief said the MPC members also expressed worry over the quantum of nonperforming loans and also the lending rate to customers in the banking sector.
Emefiele said the Committee also urged the CBN to sustain its intervention in the economy by providing loans at single digit interest rate to key sectors of the economy.
The CBN governor also cautioned market analysts to be mindful on what they say in critiquing the decisions of the committee, being the first meeting of the newly appointed members.
