CBN Retains Interest Rate at 27.5% for Second Consecutive Time
Monetary Policy Committee Holds Key Rates Steady
The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 27.5% for the second time since February 2024, signaling a pause in its tightening cycle.
CBN Governor Yemi Cardoso announced the decision on Tuesday in Abuja following the 300th Monetary Policy Committee (MPC) meeting. The unanimous vote by all 12 MPC members reflects the bank’s cautious approach to monetary policy amid current economic conditions.
Key Monetary Parameters Unchanged
The committee made the following decisions regarding Nigeria’s monetary policy:
- Maintained Cash Reserve Ratio at 50% for Deposit Money Banks
- Kept Cash Reserve Ratio at 16% for Merchant Banks
- Retained Liquidity Ratio at 30%
- Sustained Asymmetric Corridor at +500/-100 basis points around the MPR
This decision comes after the MPC had aggressively raised the MPR from 18.5% to 27.5% earlier in 2024 under Governor Cardoso’s leadership, before opting to maintain rates in this latest meeting.
The News Agency of Nigeria (NAN) reports that this pause in rate hikes suggests the CBN may be assessing the impact of previous tightening measures on inflation and economic growth.
Full credit to the original publisher: Dateline Nigeria