The Central Bank of Nigeria has retained the country’s benchmark lending rate at 26.5 per cent as authorities intensified efforts to contain inflationary pressures and protect macroeconomic stability amid growing global economic uncertainties.
Governor of the Central Bank of Nigeria, Olayemi Cardoso, announced the decision on Wednesday at the end of the Monetary Policy Committee (MPC) meeting attended by all 11 members, saying the committee resolved to maintain the Monetary Policy Rate (MPR) following an assessment of domestic and global economic conditions.
“The MPC recognises its transitory nature and remains confident that the current macroeconomic environment is sufficiently robust to support a return to disinflation,” Cardoso said.
The MPC also retained the asymmetric corridor around the MPR at +500 and -100 basis points, while keeping the Cash Reserve Ratio (CRR) for Deposit Money Banks at 45 per cent, Merchant Banks at 16 per cent and non-Treasury Single Account public sector deposits at 75 per cent.
Cardoso said the committee’s decisions were driven by concerns over persistent inflationary pressures, exchange rate volatility and uncertainties within the global economy, particularly the impact of the Middle East crisis on energy and logistics costs worldwide.
According to him, the committee observed that although inflation had increased marginally for two consecutive months, current pressures were largely temporary and expected to moderate over time.
The CBN governor explained that policymakers closely monitored the spillover effects of global geopolitical tensions, especially rising energy prices and transportation costs, but noted that the impact on Nigeria had remained relatively limited due to earlier economic reforms and monetary measures introduced by the apex bank.
The committee stressed the need to sustain existing monetary tightening measures in order to preserve gains achieved in stabilising the foreign exchange market, moderating inflation expectations and rebuilding investor confidence.
The decision to retain rates reflects the central bank’s cautious approach as emerging economies continue to grapple with external shocks, currency pressures and uncertain global financial conditions.
