The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has again voted to retain the monetary policy rate at 11.5 percent.
Godwin Emefiele, CBN governor stated this while briefing journalists the CBN headquarters on Tuesday after the MPC meeting.
The MPC also voted to retain the MPR at 11.5 per cent, Cash Reserve Ratio at 27.5 percent, and Liquidity Ratio at 30 percent.
According to Emefiele, the rates were retained to allow further economic growth, after the country exited recession in the fourth quarter of 2020, amid rising inflation.
Channels Television reports that the MPC noted the effect of insecurity on the nation’s economy and urged the Federal Government to curb insecurity to successfully tame inflation.
On the effect of the Coronavirus pandemic, the MPC advised against another total lockdown stating that this will reverse most of the economic gains made in the country since the gradual reopening of the economy.
The MPC also noted that at least 70% of Nigeria’s population must be vaccinated if the country means to achieve economic recovery.
On the CBN ban on cryptocurrency transactions in Nigerian banks, the CBN governor insisted that the encrypted nature of cryptocurrency transactions makes it hard for fraud to be investigated and criminals apprehended.
He said no responsible Central Bank will support such transactions.