The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to retain the Monetary Policy Rate (MPR) at 27 per cent, maintaining its tight monetary stance as part of efforts to curb inflation.
CBN Governor Olayemi Cardoso announced the decision on Tuesday during a press briefing at the conclusion of the Committee’s 303rd meeting in Abuja.
The MPR serves as the benchmark interest rate for the economy, influencing all other lending and interest rates across the financial system.
In addition to holding the MPR, the MPC kept the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks, 16 per cent for merchant banks, and 75 per cent for non-TSA public sector deposits. It also retained the Liquidity Ratio at 30 per cent while adjusting the Standing Facilities Corridor to +50 / –450 basis points around the MPR.
The Committee said its decisions reflect a sustained commitment to achieving low and stable inflation, noting the continued deceleration in headline inflation—driven by persistent monetary tightening, exchange rate stability, and relative stability in petrol prices.
The MPC also reviewed the ongoing bank recapitalisation exercise, confirming that 16 banks have so far met regulatory requirements.
On the global economy, Cardoso noted that while a medium-term recovery is expected, escalating trade tensions between the United States and major trading partners could weigh on global growth. He added that global inflation is projected to remain above pre-pandemic levels in the near term.
The governor reaffirmed the Bank’s commitment to evidence-based monetary policymaking aimed at safeguarding price stability and strengthening the resilience of the financial system.
