The Central Bank of Nigeria (CBN) has decided to leave its monetary policy rate (MPR) unchanged at 27 percent, Governor Olayemi Cardoso announced today at a press conference in Abuja following the bank’s 303rd meeting of the Monetary Policy Committee (MPC).
The MPC emphasised that the unchanged rate underlines the bank’s insistence on maintaining a tight monetary policy stance. In tandem with the decision, the committee maintained a cash reserve ratio (CRR) of 45 percent for commercial banks, 16 percent for merchant banks and 75 percent on non-TSA public sector deposits. The liquidity ratio remained at 30 percent, and the corridor for the standing facilities was adjusted to +50 / -450 basis points around the MPR.
Though headline inflation has begun to decelerate—thanks in part to sustained monetary tightening, exchange-rate stability and stable PMS (fuel) pricing—the MPC noted that inflation remains high and requires ongoing and coordinated policy efforts to bring it under control.
On the global front, Governor Cardoso noted that while some recovery is expected in the medium term, lingering trade tensions between the United States and key trading partners could hamper growth. The committee also projected that global inflation will stay above the pre-pandemic norm for now. The CBN reaffirmed its commitment to employing evidence-based monetary policy, aiming to ensure price stability and reinforce the resilience of the nation’s financial system.
