CBN Retains MPR at 27%, Maintains Tight Monetary Policy

The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has voted to retain the country’s Monetary Policy Rate at 27 per cent, keeping the apex bank’s tight monetary stance unchanged.

CBN Governor, Olayemi Cardoso, announced the decision on Tuesday while addressing journalists at the end of the Committee’s 303rd meeting in Abuja.

The Monetary Policy Rate serves as the baseline interest rate on which other lending and borrowing rates in the economy are built.

Cardoso also disclosed that the MPC maintained the Cash Reserve Ratio at 45 per cent for commercial banks, 16 per cent for merchant banks, and 75 per cent for non-TSA public sector deposits.

The Committee further retained the Liquidity Ratio at 30 per cent and adjusted the Standing Facilities Corridor to +50 / -450 basis points around the MPR.

According to the Committee, the decisions reflect its continued focus on achieving low and stable inflation, noting that headline inflation has begun to decelerate due to sustained monetary tightening, a more stable exchange rate, and relative stability in PMS prices.

However, MPC stressed that inflation “remains high,” adding that coordinated policy efforts are still required to bring it down further.

The Committee also reviewed Nigeria’s ongoing bank recapitalisation exercise. Cardoso confirmed that 16 banks have met the regulatory requirements, signalling progress in strengthening the financial system.

CBN Flags Global Risks

On the global front, the apex bank highlighted a modest recovery expected in the medium term, even as it noted that ongoing trade tensions between the United States and key trading partners may weaken global growth.

The MPC projected that global inflation will stay above pre-pandemic levels in the near term, driven by geopolitical uncertainties and supply chain pressures.

Cardoso reaffirmed the CBN’s commitment to evidence-based monetary policy aimed at protecting price stability and boosting financial system resilience.

He assured that the Bank will continue to adopt policy decisions supported by economic data to sustain stability in Nigeria’s financial and monetary ecosystem.