The Central Bank of Nigeria (CBN) has kept the Monetary Policy Rate at 27.5% to stabilize the economy. Governor Olayemi Cardoso confirmed that other key monetary parameters remain unchanged, including the cash reserve ratio and liquidity ratio. The decision reflects CBN’s cautious stance in managing inflation and economic growth.
The Central Bank of Nigeria (CBN) has decided to maintain the Monetary Policy Rate (MPR) at 27.5% following its latest Monetary Policy Committee (MPC) meeting. CBN Governor Olayemi Cardoso announced the decision, emphasizing that all monetary parameters remain unchanged. The committee agreed to retain the asymmetric corridor around the MPR at +500/-100 basis points. Additionally, the cash reserve ratio for deposit money banks stays at 50%, while merchant banks maintain a 16% ratio. The liquidity ratio remains fixed at 30%.
This decision aligns with the CBN's efforts to stabilize Nigeria’s economy amid inflationary pressures and global economic uncertainties. The retention of the interest rate suggests a cautious approach to monetary policy, aiming to balance inflation control with economic growth. Experts believe the move will influence lending rates, investment strategies, and overall economic activities.
