CBN Retains Interest Rate At 27 Per Cent
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 Monetary Policy Rate (MPR) serves as the baseline interest rate in an economy, with other interest rates used within the economy built upon it.
The Monetary Policy Committee also committed to maintaining a tight monetary stance. The MPC pegged the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks, 16 per cent for merchant banks, and 75 per cent on non-TSA public sector deposits.
It also maintained the Liquidity Ratio (LR) at 30 per cent, 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, a stable exchange rate, and PMS price stability.
The 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, although trade tensions between the United States and key trading partners may constrain growth.
The MPC has also projected that global inflation will remain above pre-pandemic levels in the near term.
The Governor reaffirmed commitment to evidence-based monetary policy to safeguard price stability and strengthen financial system resilience.
