The Central Bank of Nigeria (CBN) on Tuesday retained its benchmark Monetary Policy Rate (MPR) at 26.5 percent, delivering a widely expected decision aimed at safeguarding price and exchange rate stability amid persistent inflationary pressures and heightened global uncertainty.
Announcing the outcome of the two-day Monetary Policy Committee (MPC) meeting, Olayemi Cardoso, governor of the CBN, said members unanimously agreed to leave the policy rate unchanged as they weighed the risks posed by global developments, particularly uncertainties surrounding the United States economy and the ongoing conflict in the Middle East.
The committee’s decision underscores its cautious approach to balancing the fight against inflation with the need to sustain economic recovery while anchoring market expectations.
The MPC’s decision was in line with expectations, as all analysts polled by BusinessDay had forecast that the committee would maintain its tight monetary policy stance.
Analysts argued that despite headline inflation easing marginally to 15.91 percent in June after three consecutive monthly increases, the moderation was insufficient to warrant a rate cut given lingering risks from exchange rate volatility, elevated food and energy prices, and geopolitical tensions. Related News FG returns 13 oil blocks to auction market Africa's hold-rate era fades as central banks turn hawkish again Oil slips below $90 on fresh US-Iran ceasefire talks
