CBN monetary policy rate Nigeria held at 27.50% as MPC votes to retain key interest rates, aiming to stabilise inflation and the naira amid economic pressure

CBN monetary policy rate Nigeria remains unchanged, as the Central Bank of Nigeria announced that its Monetary Policy Committee (MPC) has voted to retain the current policy stance.

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The Monetary Policy Rate (MPR) stays at 27.50%, reflecting the bank’s cautious approach to economic management in light of inflationary pressures and continued naira volatility.

Speaking during a press briefing, the CBN confirmed that other key indicators remain unchanged. The Cash Reserve Ratio (CRR) is held at 50% for Deposit Money Banks and 16% for Merchant Banks.

The Liquidity Ratio (LR) remains at 30%, while the asymmetric corridor around the MPR stays at +500/-100 basis points.

“These measures reflect our firm commitment to maintaining price stability while supporting sustainable growth,” a CBN official noted.

Analysts believe the bank’s decision is aimed at tightening monetary conditions to reduce inflation, which continues to be driven by high food and energy prices.

The naira’s depreciation in official and parallel markets has also added pressure on the CBN to maintain its tightening stance.

While the current rates may limit excess liquidity in the financial system, economists warn they could restrict business access to credit. “There’s a delicate balance between controlling inflation and sustaining real sector growth,” one economist said.

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The decision aligns with the CBN’s broader strategy to bolster investor confidence, control inflation, and stabilise the local currency without derailing economic recovery efforts.