The MPC also elected to retain the CRR on private sector deposits at 20 per cent, the CRR on public sector deposits at 75 per cent and the liquidity ratio at 30 per cent.
“The committee observed that its decisions of November 2014 needed some time for the effects to crystallise in the economy and therefore voted to retain the current position,” said Central Bank of Nigeria governor, Godwin Emefiele.
He further stated that the committee noted the growth performance of the economy as well as the year-end inflation outcome with satisfaction.
“It [the MPC] was however, concerned about a number of risks including security challenges in parts of the country, which has continued to disrupt farming-related activities, and the sustained decline in oil gross domestic product,” Emefiele said.
“With regards to inflation, the committee noted the recurring challenge of excess liquidity in the banking system and the possible complications arising from capital flow reversals as well as the demand pressure in the foreign exchange market.”
(WATCH VIDEO: Nigeria’s MPC raises Monetary Policy Rate to 13%)
Emefiele also indicated that, on the external front, falling oil prices and slowing global output recovery remained significant risks.
“The gradual normalisation of monetary policy by the US Fed could exacerbate the current retrenchment of portfolios flows and increase pressure on currencies in emerging and developing countries, including Nigeria,” he said.