The Central Bank of Nigeria CBN has defied the Minister of Finance, Kemi Adeosun’s entreaties for a lower interest rate to stimulate the economy through improved borrowing from banks by the real sector. In a communique read by yhe CBN Governor, Godwin Emefeile on Tuesday at the end of a-two day MPC meeting in Abuja, the nation’s key government monetary policy formulation organ decided to keep the rate at 14 per cent. According to the CBN Governor, the stability of the rate at 14 per cent was aimed at encouraging capital inflows to Africa’s biggest economy.
The Finance minister, Kemi Adeosun wants the central bank to lower interest rates so that the government can borrow domestically to boost an economy dogged by a recession without increasing its debt servicing costs, Kemi Adeosun said on Monday. She said she wanted the central bank to reconsider a hike to interest rates which it announced at its last meeting in July, to help support the naira and attract foreign inflows in bond and equity markets.