Summary
The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has kept the nation’s Monetary Policy Rate unchanged at 27 percent.
CBN Governor Olayemi Cardoso revealed this during a press briefing held after the Committee’s 303rd gathering in Abuja.
The MPR functions as the primary interest rate that guides all other interest rates across the economy.
The Monetary Policy Committee emphasized that it will continue sustaining a firm monetary approach.
During the meeting, the Committee set the Cash Reserve Ratio (CRR) at 45% for commercial banks, 16% for merchant banks, and 75% for non-TSA public sector funds.
It also preserved the Liquidity Ratio (LR) at 30% while revising the Standing Facilities Corridor to +50 / -450 basis points around the MPR.
The Committee explained that these decisions highlight its commitment to ensuring inflation remains low and stable, noting that the steady slowdown in headline inflation has been aided by consistent monetary tightening, a steadier exchange rate, and stability in PMS pricing.
The MPC further stressed that inflation is still elevated, making it necessary to continue coordinated policy actions to bring it down more decisively.
The Committee also recognized advancements in the ongoing bank recapitalisation program, confirming that 16 banks have now satisfied their regulatory requirements.
Speaking on global economic trends, the CBN governor pointed out that a medium-term recovery is expected, though lingering trade frictions between the United States and major trading partners could limit growth.
The MPC also projected that global inflation is likely to remain above pre-pandemic levels in the short term.
The governor restated the Bank’s commitment to applying evidence-based monetary decisions to uphold price stability and reinforce the strength of the financial system.
More to follow…
What You Should Know
This update highlights the CBN’s resolve to sustain a strict monetary stance as part of its effort to curb Nigeria’s high inflation.
By retaining the MPR at 27 percent and maintaining strong regulatory measures across banks, the Committee aims to stabilize the financial system while pushing inflation toward safer levels.
The CBN also signaled optimism about medium-term global recovery despite persistent global inflation pressures.
