The Monetary Policy Committee of the Central Bank of Nigeria has voted to retain the country’s Monetary Policy Rate at 27 per cent. CBN Governor Olayemi Cardoso announced the decision during a press conference at the end of the Committee’s 303rd meeting in Abuja.
The MPR, which serves as the benchmark interest rate for the economy, will remain unchanged as the MPC reaffirmed its commitment to a tight monetary stance aimed at stabilising prices.
The Committee also kept the Cash Reserve Ratio at 45 per cent for commercial banks, 16 per cent for merchant banks, and 75 per cent for non-TSA public sector deposits. The Liquidity Ratio was maintained at 30 per cent, while the Standing Facilities Corridor was adjusted to +50 / -450 basis points around the MPR.
According to the MPC, the decisions reflect its focus on achieving low and stable inflation, noting that headline inflation has continued to decelerate due to sustained monetary tightening, a more stable exchange rate, and price stability in PMS.
The Committee acknowledged the progress recorded in the bank recapitalisation programme, with 16 banks so far meeting regulatory requirements.
Cardoso also commented on the global economic outlook, saying the medium-term recovery appears intact, although trade tensions between the United States and key trading partners may pose risks to growth. He added that global inflation is expected to remain above pre-pandemic levels in the near term.
The Governor reaffirmed the CBN’s commitment to evidence-based monetary policy aimed at protecting price stability and strengthening the resilience of Nigeria’s financial system.