Business & Economy

CBN Holds Interest Rate at 27.5%

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The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 27.5%, citing a slight easing in the country’s inflation rate.

CBN Governor Olayemi Cardoso made the announcement on Tuesday during a press briefing following the 300th MPC meeting held in Abuja.

“The committee unanimously agreed to retain the MPR at 27.50 percent,” Cardoso said.

He also disclosed that the MPC voted to maintain other key monetary policy parameters: the Cash Reserve Ratio (CRR) remains at 50% for commercial banks and 16% for mortgage banks; the Liquidity Ratio (LR) is held at 30%; and the asymmetric corridor stays at +500/-100 basis points around the MPR.

The decision comes on the heels of new inflation data released by the National Bureau of Statistics (NBS), which showed that Nigeria’s inflation rate dipped to 23.7% in April. This marks a modest improvement and signals potential stability in the nation’s macroeconomic outlook.

This is the second consecutive meeting where the MPC has chosen to maintain the benchmark interest rate, following a similar decision in February amid a cooling inflation trend.

Mike Ojo

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