The Central Bank of Nigeria (CBN) has maintained its Monetary Policy Rate (MPR) at 27%, the apex bank announced during the 303rd meeting of the Monetary Policy Committee (MPC) in Abuja. The MPR serves as the benchmark for other interest rates in the economy.
The Committee also affirmed its commitment to a tight monetary stance, aimed at sustaining price stability and curbing inflationary pressures.
Other key decisions include:
- Cash Reserve Ratio (CRR): 45% for commercial banks, 16% for merchant banks, and 75% on non-TSA public sector deposits.
- Liquidity Ratio (LR): Maintained at 30%.
- Standing Facilities Corridor: Adjusted to +50 / -450 basis points around the MPR.
The MPC highlighted the continued deceleration in headline inflation, driven by sustained monetary tightening, a stable exchange rate, and fuel price stability. Nevertheless, the Committee noted that inflation remains elevated, necessitating coordinated policy measures.
The CBN also confirmed progress in bank recapitalisation, with 16 banks meeting regulatory requirements.
On the global front, Governor Olayemi Cardoso projected a medium-term recovery, though trade tensions between the US and key partners could constrain growth. The MPC also expects global inflation to remain above pre-pandemic levels in the near term.
Governor Cardoso reaffirmed the CBN’s commitment to evidence-based monetary policy to safeguard price stability and strengthen the resilience of Nigeria’s financial system.
