The Central Bank of Nigeria (CBN) has maintained its benchmark interest rate at 27.5% to curb inflation and sustain price stability in the economy.
Olayemi Cardoso, CBN Governor, disclosed this while briefing the media after the 301st Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday.
He stated that the decision was made unanimously to allow for a proper assessment of the impact of earlier monetary tightening measures.
According to Cardoso, the Committee acknowledged the slowing pace of inflation in the country but expressed concern about new risks to macroeconomic stability.
These include the recent decline in crude oil prices, driven by increased output from non-OPEC countries, as well as global uncertainties that could affect government revenue.
The MPC decided to hold the Monetary Policy Rate (MPR), also known as the interest rate, at 27.5%. It also maintained the asymmetric corridor around the MPR at +500/-100 basis points.
The Cash Reserve Ratio (CRR) for Deposit Money Banks was retained at 50.00%, and for Merchant Banks at 16.00%, while the Liquidity Ratio remained unchanged at 30.00 percent.
Cardoso emphasized that the decision was based on sustaining efforts aimed at curbing inflation and addressing emerging monetary pressures. He disclosed that eight banks have so far met the recapitalization requirement of the CBN, while others are making progress towards compliance.
