The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has retained the country’s monetary policy rate at 27 per cent.
The CBN Governor, Olayemi Cardoso, announced this at a press conference during the Committee’s 303rd meeting in Abuja.
The MPR serves as the baseline interest rate in an economy; other interest rates used within the economy are built on it.
The Monetary Policy Committee also committed to maintaining a tight monetary stance.
The MPC pegged the Cash Reserve Ratio (CRR) at 45% for commercial banks, 16% for merchant banks, and 75% on non-TSA public sector deposits.
It also maintained the Liquidity Ratio (LR) at 30%, adjusting the Standing Facilities Corridor to +50 / -450 basis points around the MPR.
According to the Committee, the decisions reflect its focus on achieving low and stable inflation as it welcomed the continued deceleration in headline inflation, driven by sustained monetary tightening, stable exchange rate, and PMS price stability.
MPC also noted that inflation remains high, requiring continued and coordinated policy efforts to bring it down further
The Committee acknowledged progress in bank recapitalisation, confirming that 16 banks have met regulatory requirements.
On the global outlook, the CBN governor underscored a recovery in the medium term, as though trade tensions between the US and key trading partners may constrain growth.
MPC has also projected global inflation will remain above pre-pandemic levels in the near term.
The Governor also reaffirmed commitment to evidence-based monetary policy to safeguard price stability and strengthen financial system resilience
