The Central Bank of Nigeria (CBN) has decided to keep the country’s Monetary Policy Rate (MPR) unchanged at 27 per cent, the CBN Governor, Olayemi Cardoso, announced on Tuesday during the Committee’s 303rd meeting in Abuja.
The MPR, which serves as the benchmark interest rate in Nigeria, underpins other lending and borrowing rates within the economy. The Monetary Policy Committee (MPC) also pledged to maintain a tight monetary policy stance to ensure price stability.
As part of its policy measures, the MPC retained the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks, 16 per cent for merchant banks, and 75 per cent for non-TSA public sector deposits. The Liquidity Ratio (LR) remains at 30 per cent, with the Standing Facilities Corridor adjusted to +50 / -450 basis points around the MPR.
Governor Cardoso explained that these decisions reflect the Committee’s focus on achieving low and stable inflation, noting the continued deceleration in headline inflation.
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The easing, according to the MPC, has been supported by sustained monetary tightening, a stable exchange rate, and stability in Premium Motor Spirit (PMS) pricing.
Despite progress, the Committee emphasized that inflation remains elevated, requiring coordinated and ongoing policy interventions to bring it down further.
The MPC also acknowledged advancements in bank recapitalisation, confirming that 16 banks have now met regulatory requirements.
On the international front, Governor Cardoso highlighted expectations of a medium-term recovery, though trade tensions between the United States and key trading partners may continue to limit growth. The Committee also projected that global inflation will remain above pre-pandemic levels in the near term.
Cardoso reaffirmed the CBN’s commitment to evidence-based monetary policy aimed at safeguarding price stability and strengthening the resilience of the financial system
