CBN keeps lending rate at 14% as economy groans

unchanged for a second consecutive meeting as it tries to balance the needs of an economy that’s shrunk every quarter this year with an inflation rate that’s at the highest in more than a decade.


The Monetary Policy Committee held the benchmark rate a record-high 14 percent, Governor Godwin Emefiele told reporters Tuesday in the capital, Abuja. That was in line with the forecast of 18 of 20 economists surveyed by Bloomberg. One predicted a 100 basis-point increase and one said borrowing costs would be raised by 200 basis points.

“The risks to the economy remain highly elevated on two fronts: price and output,” Emefiele said. “However, considering the importance of price stability, and being mindful of the limitations of monetary policy in influencing output and employment, the committee decided unanimously in favor of retaining the current stance.”

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