CBN Keeps Rates In Battle Against Twin Devils

Caught between the devil of increasing unemployment and the deep blue sea of rising inflation, the Central Bank of Nigeria’s, CBN Monetary Policy Committee, MPC on Tuesday by a 6-to3 majority resolved to keep key monetary rates.

The key Monetary Policy Rate as such remains at 11.5 per cent.

Governor Godwin Emefiele who disclosed the outcome of the two day MPC meeting to newsmen disclosed that the committee in the face of the continuing challenges sought to affirm its key aim of price and monetary price stability.

Emefiele confessed that it was a difficult choice but that the majority of the MPC members believed that doing otherwise could further trigger the balance and offset ongoing efforts to sustain the recovery.

Mr. Emefiele was quick to affirm that the recovery from the last recession was not just fragile but that the country just slipped out of it and as such every effort must be made to not to slip back into recession.

Mr. Emefiele, however, affirmed that the bank would continue to watch over the system to keep inflationary pressures in check.

The CBN boss while responding to a reporter’s question dismissed fears about the shortage of dollars by some banks for the payment of school fees and PTA.

He said the bank would set up a call centre for customers unable to access foreign exchange through the banks to lodge their complaints.

The move Governor Emefiele said was to assure the system stable and ward off a run on the country by speculators.

 GreenWhiteGreen GWG had earlier reported that the CBN was caught between the devil and the deep blue sea in working out rates that would keep the system stable in the face of strong inflationary pressures and the growth in the economy.

Mr. Emefiele’s decision to abide by the bank’s mandate of stabilizing monetary rates and prices is bound to win him plaudits in the markets.

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