The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 27.5% for January, marking the first pause in interest rate hikes since Governor Olayemi Cardoso assumed office in September 2023.
The decision, announced after the 299th Monetary Policy Committee (MPC) meeting in Abuja, follows a notable drop in inflation, which eased to 24.48% in January after the Consumer Price Index (CPI) rebase.
“All members of the MPC unanimously agreed to retain the interest rate at 27.5%,” Cardoso stated during a press briefing on Thursday, emphasizing that the pause aims to consolidate the recent inflation decline.
Other key monetary policy parameters were also left unchanged: the Cash Reserve Ratio (CRR) at 50%, the Liquidity Ratio (LR) at 30%, and the asymmetric corridor at +500/-100 basis points around the MPR.
This policy stance aligns with calls from economists and financial experts who have advocated for a rate pause in recent months. The Centre for the Promotion of Private Enterprise has been at the forefront of urging the CBN to halt rate hikes to support economic growth.
The National Bureau of Statistics (NBS) earlier this week reported a significant drop in Nigeria’s headline and food inflation, with rates falling to 24.48% and 26.08% in January, down from 28.92% and 33.93% respectively in December 2023.
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