The Central Bank of Nigeria (CBN) has retained the
Monetary Policy Rate (MPR) at 27.50 percent, signaling a pause in rate hikes
amid a marginal easing of the country’s inflation.
CBN Governor Olayemi Cardoso announced the decision on
Tuesday during a press briefing held after the 300th Monetary Policy Committee
(MPC) meeting in Abuja.
“The committee unanimously agreed to retain the MPR at
27.50 percent,” Cardoso stated.
In addition to holding the benchmark interest rate,
the MPC also retained other key monetary policy instruments, including:
Cash Reserve Ratio (CRR): 45% for commercial banks and
16% for merchant banks
Liquidity Ratio (LR): 30%
Asymmetric Corridor: +500/-100 basis points around the
MPR
Cardoso said the decision to hold rates steady was
largely influenced by a drop in headline inflation, which fell to 23.7 percent
in April, according to the latest report from the National Bureau of Statistics
(NBS).
Analysts say the CBN’s move signals a cautious
approach, allowing previous monetary tightening to filter through the economy
while monitoring inflationary trends.
This is the second consecutive time the CBN has
maintained the rate after a series of aggressive hikes aimed at tackling
inflation and stabilizing the naira. The rate was last adjusted in February
2024, when it was raised to 27.50 percent.
The MPC’s decision comes amid growing calls for
monetary stability and fiscal coordination, especially as businesses and
households continue to grapple with high borrowing costs.
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