adsNigeria’s decision to retain its benchmark interest rate at 26.5 percent signals growing confidence among policymakers that recent economic reforms are strengthening the country’s ability to withstand external shocks, even as inflationary risks remain elevated.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Tuesday voted to keep all monetary parameters unchanged at the end of its 305th meeting, maintaining the Monetary Policy Rate at 26.5 percent, the asymmetric corridor at +50/-450 basis points around the MPR, the Cash Reserve Ratio at 45 percent for deposit money banks and 16 percent for merchant banks, while retaining the liquidity ratio at 30 percent.
Olayemi Cardoso, governor of the CBN, who announced the outcome of the meeting on Wednesday said the Committee’s decision was anchored on a comprehensive assessment of domestic and global risks, particularly rising geopolitical tensions in the Middle East, which have triggered renewed pressure on energy prices, transportation costs, and global supply chains.
Despite inflation rising for a second consecutive month, the MPC described the pressure as largely transitory and expressed confidence that the current macroeconomic environment remains sufficiently robust to support a return to disinflation.
