ABUJA, APRIL 4, 2018 – The Central Bank of Nigeria kept its main interest rate at 14 percent on Wednesday, its governor Godwin Emefiele said, after the first policy-setting meeting of the year.
The west African country’s economy emerged from its first recession in 25 years last year. But growth remains fragile, although higher oil prices and debt sales over the last few months have helped the continent’s biggest crude producer to accrue billions of dollars in foreign reserves.
Emefiele said the nine committee members at the meeting voted unanimously to hold the rate at a record high of 14 percent, where it has been since July 2016 to support the naira and help curb inflation.
Most analysts polled by Reuters had expected rates to be kept on hold with cuts seen later this year.
Recent economic data had suggested there was scope for a rate cut. Inflation fell to an almost one-year low in February at 14.33 percent, while the country’s dollar reserves rose to $46.2 billion at the end of March.
The central bank cancelled its January meeting when it was unable to form a quorum after several departures reduced it to just five out of 12 members.
The appointment of new members was delayed by a dispute between parliament and the presidency. The Senate – the upper house – held up some presidential nominations, leaving the MPC unable to form a quorum, but lawmakers approved the appointments in March.
