The Central Bank of Nigeria (CBN) has retained its Monetary Policy Rate (MPR) at 26.5 per cent, as policymakers continue efforts to curb inflation and stabilise the economy.
CBN Governor Olayemi Cardoso announced the decision on Wednesday in Abuja after the Monetary Policy Committee (MPC) meeting, which was attended by all 11 members of the committee.
Cardoso said the decision followed a comprehensive review of both domestic and global economic conditions, noting that inflationary pressures remained a key concern for policymakers.
“The Committee decided to retain the Monetary Policy Rate at 26.5 per cent, alongside all other key policy parameters,” he said.
He explained that the asymmetric corridor around the MPR was also retained at +500 and -100 basis points, while the Cash Reserve Ratio (CRR) remained unchanged at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for public sector deposits outside the Treasury Single Account.
According to him, the committee took the decision after assessing recent inflation trends, which have shown marginal increases over the past two months.
“While inflation has edged up slightly, the Committee views current pressures as largely transitory and expects a gradual moderation in the near term,” Cardoso said.
He added that global risks, particularly geopolitical tensions in the Middle East, continued to exert pressure on energy and transportation costs worldwide.
“Developments in the global environment, especially ongoing geopolitical conflicts, have contributed to increased costs in energy, logistics, and transportation,” he noted.
Cardoso, however, said Nigeria’s economy has so far remained relatively resilient, attributing this to earlier monetary and fiscal policy interventions.
He stressed that the MPC remains committed to maintaining a tight monetary stance to support exchange rate stability, contain inflation expectations, and strengthen investor confidence.
“The Committee will continue to closely monitor both domestic and international developments and take appropriate policy actions to ensure price stability and sustainable economic growth,” he said.
The decision to hold rates steady comes amid ongoing concerns over inflationary pressure, exchange rate volatility, and global economic uncertainty affecting emerging markets.