Abuja, Sept, 20, 2016- The Central Bank of Nigeria(CBN) today shoved aside advice by the Minister of Finance, Mrs. Kemi Adeosun to reduce lending rate, but voted to retain MPR at 14 percent.
CBN Governor, Mr. Godwin Emefiele who made the revelation at a press briefing in Abuja after a meeting of the Monetary Policy Committee(MPC) said all 10 members of the committee voted to retain MPR at 14 percent and CRR at 22.5 percent and liquidity at 30 percent.
He said lowering of interest rates as an economic measures has outlived its usefulness, adding that it is not advisable to reduce rate at this moment.
He said lowering of rates was extensively discussed before arrive g at the decision. He said that in the past when the Apex bank injected money into the system, the money went to traders who used the funds in putting more pressure on the Forex.
He added that such reduction could also lead to a situation that where we have to much money chasing few goods. He said he is optimistic now because in the last few months there has been an inflow of forex up to $1billion.
