The MPR remains the baseline for all other interest rates in the economy, guiding lending and borrowing across Nigeria.
The Central Bank of Nigeria (CBN) has retained the country’s Monetary Policy Rate (MPR) at 27 per cent, the apex bank announced at the 303rd Monetary Policy Committee (MPC) meeting in Abuja.
CBN Governor, Olayemi Cardoso, disclosed the decision during a press briefing, noting that the MPR serves as the baseline interest rate in the economy, influencing all other lending and borrowing rates.
The MPC reaffirmed its commitment to a tight monetary stance, with the following key decisions:
- Cash Reserve Ratio (CRR): 45% for commercial banks, 16% for merchant banks, and 75% on non-TSA public sector deposits
- Liquidity Ratio (LR): maintained at 30%
- Standing Facilities Corridor: adjusted to +50 / -450 basis points around the MPR
The Committee said these measures aim to sustain the ongoing deceleration in headline inflation, supported by stable exchange rates, fuel price stability, and consistent monetary tightening.
“While inflation is gradually slowing, it remains high and requires continued, coordinated policy efforts to bring it down further,” the MPC noted.
The Governor also highlighted progress in bank recapitalisation, confirming that 16 banks have met regulatory requirements.
On the global front, Cardoso said the medium-term outlook shows recovery potential, despite trade tensions between the US and major trading partners. The MPC projects global inflation to remain above pre-pandemic levels in the near term.
The Governor concluded by reaffirming the CBN’s commitment to evidence-based monetary policies to safeguard price stability and strengthen the resilience of Nigeria’s financial system.