Ahead of the yuletide period, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has decided to keep the Monetary Policy Rate (MPR) at 27%, aiming to maintain price stability during the festive season.
CBN Governor Olayemi Cardoso, who presented the committee’s decisions, said the MPC opted to keep the policy stance unchanged to allow the impact of previous rate hikes to continue filtering through the economy.
He noted that Nigeria’s recent gains, such as easing inflation, stronger external reserves, and improved international ratings, must be protected through consistent policy discipline.
The MPC also retained the Cash Reserve Ratio (CRR) at 45% for commercial banks, 16% for merchant banks, and 75% for non-TSA public sector deposits.
The Liquidity Ratio remains at 30%, while the Standing Facilities Corridor was adjusted to +50 / -450 basis points around the MPR.
Cardoso, during the Committee’s 303rd meeting in Abuja on Tuesday, explained that the decisions reflect the committee’s focus on achieving low and stable inflation, citing the continued decline in headline inflation.
The easing, according to the MPC, has been driven by sustained monetary tightening, a more stable exchange rate, and stable Premium Motor Spirit (PMS) pricing.
Despite these improvements, the committee stressed that inflation remains high and requires coordinated, ongoing policy actions to bring it down further.
The MPC also reported progress in the bank recapitalisation process, confirming that 16 banks have now met regulatory requirements.
On the global front, Cardoso highlighted expectations of a medium-term economic recovery, though trade tensions involving the United States and key trading partners may still weigh on growth.
The committee further projected that global inflation will remain above pre-pandemic levels in the near future.
Cardoso reaffirmed the CBN’s commitment to evidence-based policymaking aimed at ensuring price stability and safeguarding the financial system.
