By Abiola Olawale
The Central Bank of Nigeria (CBN) has decided to maintain its benchmark interest rate at 27.5%, as announced following Thursday’s Monetary Policy Committee (MPC) meeting.
Governor CBN, Mr Olayemi Cardoso, disclosed this at the end of the Monetary Policy Committee (MPC) meeting of the apex bank.
Cardoso asserted that the decision reflects the CBN’s ongoing efforts to balance inflation control with economic growth amidst challenging domestic and global economic conditions.
He said: “The committee was unanimous in its decision to hold all parameters and thus decided as follows: retain the MPR at 27.50%, retain the asymmetric corridor around the MPR at plus 500 to minus 100 basis points. Retain the cash reserve ratio of deposit money banks at 50% and merchant banks at 16% and retain the liquidity ratio at 30%.”
The New Diplomat reports that the rate, which influences borrowing costs and liquidity in the economy, was retained after a series of aggressive hikes in 2024 aimed at curbing soaring inflation, which has been driven by factors such as currency depreciation, rising food prices, and supply chain disruptions.
