The Central Bank of Nigeria (CBN) yesterday announced that the prevailing 12 per cent lending rate in the country had been retained.
The Acting Governor of the apex bank, Dr Sarah Alade, made this known while briefing newsmen on the outcome of the 94th Monetary Policy Committee meeting in Abuja.
Alade, however, said that the committee had raised the Cash Reserved Requirement (CRR) of the private sector from 12 per cent to 15 per cent.
She said that the decisions of the committee on the lending rate and the CRR were reached through majority votes of members.
According to her, the committee unanimously voted for further tightening of monetary policy, but members were divided on the instruments.
On domestic economic and financial development, Alade noted that robust growth had been recorded, adding that non-oil sector had continued to be the main driver of growth since the last quarter of 2013, 8.76 per cent rise.
She said that inflation had remained “on the target range” noting that the downward trend in inflation commenced in December 2012 and continued up to February 2014.
“The year-on-year headline inflation fell consistently from 9.5 per cent in February 2013 to 7.9 per cent in November 2013 but rose marginally to 8.0 per cent in December 2013 and January 2014.
“In February 2014, however, it moderated to 7.7 per cent” she said Alade said that the committee expressed satisfaction over the sustenance of single digit of all measures of inflation, adding that members also restated commitment to sustaining the price stability objective. (NAN)