CBN holds interest rate at 26.5%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has again retained the benchmark interest rate at 26.5 per cent. Briefing journalists at the end of the 306th MPC meeting in Abuja on Tuesday, the CBN Governor, Mr Olayemi Cardoso, said the decision to retain the rate followed a thorough assessment of […]

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has again retained the benchmark interest rate at 26.5 per cent.

Briefing journalists at the end of the 306th MPC meeting in Abuja on Tuesday, the CBN Governor, Mr Olayemi Cardoso, said the decision to retain the rate followed a thorough assessment of the balance of risks and key economic indicators.

“All 11 members of the MPC present at the meeting voted to retain the Monetary Policy Rate (MPR) at 26.5 per cent.

“Also, the MPC voted to retain the Cash Reserve Ratio (CRR) for Deposit Money Banks at 45 per cent, Merchant Banks at 16 per cent, and non-TSA public sector deposits at 75 per cent,” he said.

On the rationale behind the committee’s decision, Cardoso said: “Although headline inflation moderated marginally, global uncertainties have heightened, which is why maintaining a cautious monetary policy stance remains appropriate.”

He added that the committee also noted the recent resurgence of tensions in the Middle East, which has driven up energy costs, while stressing that Nigeria’s economy has remained resilient.