The Central Bank of Nigeria’s monetary policy committee has voted to hold all key interest rates at their current levels following its 299th meeting, with the monetary policy rate held at 27.5%. This decision was announced by CBN Governor Yemi Cardoso and reflects a strategic approach to managing the nation’s economic challenges, particularly in light of recent inflation trends and economic growth indicators.
Meeting Details and Decisions
The MPC meeting a two-day event, is chaired by Governor Yemi Cardoso, focusing on reviewing Nigeria’s economic and financial conditions. The committee decided to:
- Retain the Monetary Policy Rate (MPR) at 27.50%, following a 25 basis point increase from 27.25% in the 298th MPC meeting held in November 2024.
- Maintain the asymmetric corridor around the MPR at +500/-100 basis points, allowing interbank rates to fluctuate between 27.4% and 32.5%.
- Keep the Cash Reserve Ratio (CRR) for Deposit Money Banks at 50.00% and for Merchant Banks at 16%, affecting the amount banks can lend.
- Hold the Liquidity Ratio at 30.00%, ensuring banks maintain sufficient liquid assets for short-term liabilities.
This decision to hold rates steady contrasts with the previous meeting’s rate hike, indicating a pause to assess the impact of earlier tightening measures.