CBN Retains Interest Rate At 27.5%

The Central Bank of Nigeria’s Monetary Policy Committee (MPC) has voted to retain the Monetary Policy Rate (MPR) at 27.50 percent.

The decision was announced by CBN Governor Olayemi Cardoso at the conclusion of the 301st MPC meeting held on Tuesday in Abuja.

He stated that all MPC members agreed unanimously to maintain the interest rate amid sustained moderation in the inflation rate, which stood at 22.22 percent in July.

In addition to the interest rate, the committee maintained other key monetary policy instruments. The Cash Reserve Ratio (CRR) remains at 50 percent for deposit money banks and 16 percent for merchant banks. The Liquidity Ratio (LR) was also held steady at 30 percent, with the asymmetric corridor retained at +500/-100 basis points around the MPR.

This marks the third consecutive MPC meeting—following decisions in February and May—where the apex bank opted to keep the interest rate unchanged at 27.50 percent.

Prior to the meeting, economic analyst Bismark Rewane had forecasted a potential policy shift. He predicted a 25 basis point interest rate cut in July’s MPC meeting, citing global inflationary pressures and a decline in Nigeria’s own inflation rate as key factors.

Similarly, industry stakeholders had anticipated a rate cut. The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, noted that an interest rate cut was the expectation of manufacturers.

In related economic developments, DAILY POST reported on Monday that Nigeria’s economy expanded to N372.8 trillion in 2024 following the recent rebasing of the country’s Gross Domestic Product (GDP).