The Central Bank of Nigeria (CBN) has retained its benchmark Monetary Policy Rate (MPR) at 26.5%, maintaining its tight monetary policy stance to curb inflation.
The decision was announced by CBN Governor Olayemi Cardoso after the 306th Monetary Policy Committee (MPC) meeting in Abuja. It marks the second consecutive meeting in which the committee has left the policy rate unchanged, following a 50-basis-point reduction earlier this year from 27%.
According to Cardoso, the MPC opted to hold rates after reviewing domestic and global economic conditions. Although Nigeria’s inflation rate eased slightly to 15.91% in June from 15.93% in May, the committee noted that renewed geopolitical tensions in the Middle East continue to pose risks to price stability through higher energy and import costs.
The MPC also:
•Retained the Cash Reserve Ratio (CRR) for commercial banks at 45%.
•Maintained the CRR for merchant banks at 16%.
•Kept the 75% reserve requirement on non-Treasury Single Account (TSA) public sector deposits.
•Narrowed the standing facilities corridor around the MPR to +50/-450 basis points to encourage banks to increase lending rather than hold excess liquidity with the CBN.
The apex bank said the decision reflects its commitment to maintaining price stability while monitoring the impact of ongoing economic reforms and global developments before considering any further monetary policy adjustments.
