The Central Bank of Nigeria (CBN) has voted to hold all key interest rates steady at 27.5% as the Monetary Policy Committee (MPC) wrapped up its first meeting of the year on Thursday.
Announcing the decision at a press briefing in Abuja, CBN Governor Yemi Cardoso stated that the committee opted for a cautious approach and maintained tight monetary policy because of the evolving inflationary trends and liquidity conditions.
The MPC also resolved to:
- Retain the asymmetric corridor around the MPR at +500/-100 basis points.
- Hold the Cash Reserve Ratio (CRR) of Deposit Money Banks at 50% and Merchant Banks at 16%.
- Maintain the Liquidity Ratio at 30%.
The decision to keep rates unchanged reflects the CBN’s focus on stabilizing inflation and supporting economic growth while ensuring that monetary conditions remain conducive for financial market stability.
Nigeria’s inflation rate stood at 24.48% in January following the rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS).
The recalculated figures represent a drop from December’s 34.8% and signals speculation about potential monetary easing.
However, the CBN’s decision to hold rates suggests policymakers remain cautious and will need further economic data before considering any adjustments to the monetary policy stance.
With money supply expanding to N110.98 trillion, concerns over excess liquidity remain at the forefront of policy discussions.
The MPC is expected to continue monitoring inflationary pressures, exchange rate stability, and global economic conditions before making further adjustments in future meetings.
Financial market analysts had anticipated a rate hold, given the evolving macroeconomic environment.
The CBN’s decision signals continued commitment to anchoring inflation expectations while ensuring that monetary conditions remain aligned with Nigeria’s economic recovery and financial stability goals.
