The Central Bank of Nigeria (CBN) has voted to maintain the country’s benchmark interest rate at 27.5 percent, citing continued moderation in inflation as a key reason for the decision.
CBN Governor Olayemi Cardoso disclosed this on Tuesday in Abuja, following the conclusion of the 301st Monetary Policy Committee (MPC) meeting. Cardoso noted that the decision was unanimously agreed upon by all committee members, reflecting a cautious stance on sustaining macroeconomic stability.
Nigeria’s headline inflation eased to 22.22 percent in July, marking a notable deceleration, and prompting the apex bank to hold its ground on rates rather than cut.
- Other key monetary parameters also remain unchanged:
- Cash Reserve Ratio (CRR): 50% for Deposit Money Banks, 16% for Merchant Banks
- Liquidity Ratio: Maintained at 30%
- Asymmetric Corridor: Held at +500/-100 basis points around the MPR
This marks the third consecutive meeting, following February and May, where the CBN has held the interest rate steady at 27.5%.
The decision contrasts with predictions from some economists, including financial analyst Bismarck Rewane, who had anticipated a modest rate cut of 25 basis points, citing global inflationary pressures and easing domestic inflation.
Similarly, the Manufacturers Association of Nigeria (MAN) had expressed hopes for a rate reduction to relieve pressure on the industrial sector.
The MPC’s firm position suggests a priority on curbing inflation over stimulating borrowing and spending, even as Nigeria’s economy reportedly expanded to ₦372.8 trillion in 2024 following GDP rebasing.
