• Thursday, December 07, 2023
businessday logo


CBN again holds benchmark interest rate at 11.5% amid declining inflation

Explainer: Should CBN determine bank directors’ tenure?

The Central Bank of Nigeria (CBN) on Tuesday retained its benchmark interest rate at 11.5 percent amid improvement in inflation.

This comes not as a surprise as analysts in the financial services sector had expected a hold following weak growth amid declining inflation.

The CBN has kept the MPR at 11.5 percent since September 2020.

Nigeria’s inflation dropped to 17.75 percent in June 2021 from 17.93 percent in May 2021 according to data from the National Bureau of Statistics (NBS).

Read also: Nigerias high inflation threatens to worsen already low savings rate

In the fourth quarter of 2020, Nigerian economy sluggishly recovered from recession it slipped into in the second quarter (Q2) 2020 – after output contracted for the second consecutive quarters.

Real GDP grew by 0.51 percent in the first quarter of 2021 from 0.11 per cent in Q4 2020, according to data from the NBS.

More details soon….