The Central Bank of Nigeria says it has retained its benchmark rate at 11.5 per cent, and other key monetary policy parameters.

The CBN governor, Godwin Emefiele, announced this Friday after the Monetary Policy Committee meeting that began Thursday.

The policy rate is the rate at which the central banks lends to banks, which therefore determines the rate at which commercial banks lend money to businesses and individuals.

It is used to control money supply in the economy, with a direct implication for economic growth and stability of prices.

Addressing journalists at the end of the 2-day meeting of the MPC meeting in Abuja, Mr Emefiele said the committee voted to keep the policy rate at 11.5 per cent, with the assymetric corridor of +100/-700 basis points around the MPR.

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The committee also voted to retain the Cash Reserve Ratio (CRR) at 27.5 per cent as well as the Liquidity Ratio at 30 per cent.

The committee noted Nigeria’s impressive 5.01 per cent GDP growth in the second quarter, and decelerating inflation that fell in August for the fifth straight month, and argued that holding the parameters will be a balance between boosting further growth and checking inflation.

Mr Emefiele, however, noted that headline inflation remained above the CBN’s target range of between six and nine per cent.

It noted the gradual recovery in economic output growth, and hoped the second quarter growth will be better.

The bank urged banks to provide credit to businesses to boost growth.

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