By UDO ONYEKA

The Monetary Policy Committee, MPC  held its benchmark lending rate at 12.5 percent, the governor said on Monday.

The Central Bank of Nigeria Governor, Godwin Emefiele said eight of the 10 committee members voted to retain the rate and two voted for a rate cut.

The committee retained cash reserve ratio at 27.5 percent, liquidity ratio at 30 percent, and asymmetric corridor MPR at +200/-500 basis points.

According to  Emefiele the tightening would increase the cost of production which in turn would translate to higher prices of goods and services.

He explained the committee felt that a further cut in the MPR may not necessarily lead to a corresponding decrease in market interest.

” The committee noted at this meeting that the economic fundamentals have marginally improved by the end of June 2020, following gradual pick up of economic activities as the positive impacts of various interventions, permeate within the economy.

” The earlier downward adjustment of MPR by 100 basis points to 12.5 percent to signal to loosen policy stance is yielding positive impacts ad credit growth increased significantly in the economy”.

In May the bank unexpectedly cut the rate by 100 basis points to 12.5 percent from 13.5 percent. It was the largest rate cut since 2015.