By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Godwin Emefiele, NEW Nigeria’s central bank governor has retained benchmark interest rate at 12 percent in his first monetary policy committee (MPC) meeting; while promising to lower borrowing costs gradually as price pressures ease.

“As we begin to see that the macroeconomic levels are moving in the direction that we expect, you’ll begin to see the reversal of interest rates in the direction of going low. We are optimistic of the mandate and the promise that we made to our people to bring down the interest rate,” Emefiele said.

Nigeria’s central bank has since November 2011 kept its benchmark rate unchanged at 12 percent, and tightened its monetary policy by increasing the cash reserve requirement (CRR) on both the private sector funds and public sector funds to 15 percent and 75 percent respectively.

According to Emefiele, inflation risks may emanate from food and the likely increase in aggregate spending in the run-up to 2015 general elections; which policy makers will monitor trend closely.

The Nigeria’s central bank governor affirmed that the policy direction of the exchange rate and the interest rate must be seen not only in the context of price and financial stability but also in enhancing the quality of life of Nigerians and promoting employment generation.