Nigeria Monetary Policy January 2016


Nigeria: Central Bank of Nigeria keeps rates unaltered in January

January 29, 2016

At its 28–29 January monetary policy meeting, the members of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) unanimously voted to maintain the monetary policy rate at 11.00% and keep unchanged the asymmetric corridor of plus 200/minus 700 basis points around the key rate. Finally, the Committee decided to keep the Cash Reserve Requirement (CRR) at 25.0% and the Liquidity Ratio (LR) at 30.0%.

The Central Bank defended its decision citing weaknesses in Nigeria’s economy, particularly due to low oil prices. That said, the Committee remains upbeat about a gradual recovery in economic activity mainly due to notable improvements in power and supply of refined petroleum products. Regarding international developments, the Bank acknowledged diverging trends between developed economies, which are slightly recovering, and emerging-market countries.

Regarding price developments, the Bank pointed out that inflation ticked up in December due to higher prices for food. The next monetary policy meeting is scheduled for 22 March.

FocusEconomics Consensus Forecast panelists expect the monetary policy rate to end this year at 13.29%. Next year, the panel sees the monetary policy rate declining slightly to 13.50%.


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Nigeria Monetary Policy Chart

Nigeria Monetary Policy January 2016

Note: Monetary policy rate in %.
Source: Central Bank of Nigeria.

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