Tuesday, July 15, 2025
  • REPORT A STORY
  • PRIVACY
  • CONTACT US
WITHIN NIGERIA - NEWS PICKS
  • HOME
  • FEATURES
  • NEWS PICKS
    • BREAKING
    • National
    • Local News
    • Politics
    • Diaspora
    • Business
    • Education
    • Sports
    • World News
      • Africa
      • U.S
      • Asia
      • Europe
    • XTRA
  • ENTERTAINMENT
  • MORE
    • GIST
    • ARTICLES
    • VIDEOS
No Result
View All Result
WITHIN NIGERIA - NEWS PICKS
No Result
View All Result
  • HOME
  • FEATURES
  • NEWS PICKS
  • ENTERTAINMENT
  • MORE

Despite high inflation, CBN retains lending rate

Adejayan Gbenga Gsong by Adejayan Gbenga Gsong
March 23, 2021
in National
Reading Time: 2 mins read
0 0
A A
0
Share on FacebookShare on Twitter

The Central Bank of Nigeria has retained the policy rate at 11.5 per cent despite the country’s three-year high inflation, a decision it said sought to ensure a balance between the need for price stability and growth.

The CBN governor, Godwin Emefiele, announced this Tuesday after the Monetary Policy Committee meeting that began Monday.

Other parameters that were retained include the Cash Reserve Requirement (CRR) at 27.5 per cent, Liquidity Ratio at 30 percent and the asymmetric corridor( margin around the MPR) at +100/-700 basis points around the MPR.

The CRR is the funds kept with the CBN as a minimum deposit a commercial bank must hold as reserves, which they cannot lend out to customers.

READ ALSO

Buhari and I were admitted to same hospital before his death – Abdulsalami

75 die in Edo road accidents

SGF Akume leads as Tinubu sets up committee for Buhari’s state burial

Buhari’s death: Northern Governors declare Tuesday public holiday

The decision was not unanimous as some members voted to increase the lending rate to check stagflationary pressure that has seen prices skyrocket across sectors in the country amidst high unemployment.

Increasing the lending rate should aim primarily at reducing money supply in the economy, a key tool in fighting inflation. However, doing so can slow economic growth at a time the country has just exited a recession, with businesses not able to borrow much to fund their operations.

Nigeria’s inflation rate rose to 17.33 per cent in February 2021, from 16.47 per cent in January.

The NBS said in its report that food inflation rose to 21.79 per cent in February, compared to 20.57 per cent recorded in January 2021, the highest point since the data series began over a decade ago.

The prices of food rose earlier in the month when a blockade was announced by food and cattle suppliers.

The blockade led to a sharp rise in the prices of beef, foodstuff and vegetables, worsening Nigeria’s runaway food inflation.

In March, the nation’s statistics bureau said Nigeria’s unemployment rate rose to 33.3 per cent, translating to some 23.2 million people, the highest in at least 13 years and the second-highest rate in the world.

The figure jumped from 27.1 per cent recorded in the second quarter amidst Nigeria’s lingering economic crisis made worse by the coronavirus pandemic.

Unemployment rate in the country has more than quadrupled since 2016 when the economy slipped into a recession. A second recession occurred in 2020.

Nigeria’s economy limped out of recession in the fourth quarter of 2020, recording its first but weak growth in three quarters as coronavirus-linked lockdown was lifted across the country.

The NBS said at the time that Gross Domestic Product (GDP) grew 0.11 per cent in the three months between October and December from a year earlier.

The economy hit recession in the third quarter of 2020 with a decline of 3.6 per cent, having contracted 6.1 per cent in the second quarter, leading to Nigeria’s second recession in five years.

Discussion about this post

ADVERTISEMENT

LATEST

Buhari and I were admitted to same hospital before his death – Abdulsalami

July 14, 2025

75 die in Edo road accidents

July 14, 2025

SGF Akume leads as Tinubu sets up committee for Buhari’s state burial

July 14, 2025

Buhari’s death: Northern Governors declare Tuesday public holiday

July 14, 2025

BREAKING: FG announces public holiday in honour of late Muhammadu Buhari

July 14, 2025

Ex-Super Eagles attacker Waobikeze is dead

July 14, 2025
Load More
NEWS PICKS — WITHIN NIGERIA

WITHIN NIGERIA MEDIA LTD.

NEWS, MULTI MEDIA

WITHIN NIGERIA is an online news media that focuses on authoritative reports, investigations and major headlines that springs from National issues, Politics, Metro, Entertainment; and Articles.

Follow us on social media:

CORPORATE LINKS

  • About
  • Contacts
  • Report a story
  • Advertisement
  • Content Policy
  • Privacy Policy
  • Terms
 
  • Fact-Checking Policy
  • Ethics Policy
  • Corrections Policy
  • REPORT A STORY
  • PRIVACY
  • CONTACT US

© 2022 WITHIN NIGERIA MEDIA LTD. designed by WebAndName

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • HOME
  • FEATURES
  • NEWS PICKS
    • BREAKING
    • National
    • Local News
    • Politics
    • Diaspora
    • Business
    • Education
    • Sports
    • World News
      • Africa
      • U.S
      • Asia
      • Europe
    • XTRA
  • ENTERTAINMENT
  • MORE
    • GIST
    • ARTICLES
    • VIDEOS

© 2022 WITHIN NIGERIA MEDIA LTD. designed by WebAndName