The Central Bank of Nigeria’s Monetary Policy Committee (MPC) has voted to retain the Monetary Policy Rate (MPR) at 27.50 percent following its 301st meeting held Tuesday in Abuja.
CBN Governor, Olayemi Cardoso, who announced the decision, said the committee unanimously agreed to hold the rate steady in light of continued moderation in inflation, which dropped to 22.22 percent in July.
In addition to keeping the interest rate unchanged, the MPC also maintained the Cash Reserve Ratio (CRR) at 50 percent for Deposit Money Banks and 16 percent for Merchant Banks. The Liquidity Ratio (LR) remains at 30 percent, with the asymmetric corridor retained at +500/-100 basis points around the MPR.
This marks the third consecutive time the CBN has held the benchmark interest rate at 27.50 percent, following previous decisions in February and May.
Earlier, economist Bismarck Rewane had projected a 25 basis point rate cut, citing easing domestic inflation and rising global inflation pressures. Similarly, manufacturers, through the Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, had expressed hopes for a rate reduction to support industrial growth.
Meanwhile, Nigeria’s economy was recently reported to have expanded to N372.8 trillion in 2024 after the latest GDP rebasing, highlighting the country’s evolving macroeconomic landscape.
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