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MPC leaves Key Lending Rate Unchanged

By on May 23, 2012

The Monetary Policy Committee (MPC), chaired by the CBN Governor, Lamido Sanusi, decided unanimously to maintain the key lending rate at 12%.

The MPC cited several factors including a recessionary global economy; reduced domestic economic output in key sectors like Oil and Gas, and Agriculture; declining crude oil prices; inflation; and security issues, for taking this decision.

According to a statement released by MPC yesterday emphasis was made on the need to strengthen structural reforms.

The statement read, “The Committee noted that since its meeting in  March  2012,  the uncertainty surrounding the global economy  remained elevated owing to  continued economic slowdown in advanced and major emerging economies as well as the financial  stress in key advanced economies.   These developments will impact the domestic economy through the trade and financial flow channels, weakening the external and fiscal positions…The growth and development of the Nigerian economy will continue to be at risk so long as progress is not made in structural reforms.”

The MPC also maintained the Cash Reserve Requirement and Liquidity Ratio.

The full statement is available here.