CBN keeps interest rate steady at 27%

Nigeria’s Monetary Policy Committee has once again opted for caution, voting to keep the country’s benchmark interest rate fixed at 27 per cent as the Central Bank continues its battle against stubborn inflation.

CBN Governor Olayemi Cardoso announced the decision at a press briefing in Abuja following the Committee’s 303rd meeting, noting that the Bank would maintain its tight monetary stance for the foreseeable future. The Monetary Policy Rate (MPR), he explained, remains the anchor for all lending rates across the economy.

In its latest resolution, the MPC also left key financial indicators unchanged. The Cash Reserve Ratio stays at 45% for commercial banks, 16% for merchant banks, and 75% on non-TSA public sector deposits. The Liquidity Ratio remains at 30%, while the Standing Facilities Corridor has now been adjusted to +50 / -450 basis points around the MPR.

Cardoso said the decisions reflect the Committee’s determination to bring inflation under firm control. He welcomed the recent slowdown in headline inflation, attributing it to sustained monetary tightening, a more stable exchange rate, and relative calm in petrol prices. But he warned that inflation remains too high and requires consistent policy discipline to drive it down further.

The Committee also reported steady progress on the bank recapitalisation programme, revealing that 16 banks have already met regulatory capital requirements.

On the global front, Cardoso pointed to a cautiously improving outlook, even as trade tensions between the United States and major partners threaten to drag on global growth. Worldwide inflation, the MPC projected, is likely to stay above pre-pandemic levels in the near term.

Reaffirming the Bank’s policy path, Cardoso said the CBN remains committed to evidence-based monetary decisions that safeguard price stability and reinforce the resilience of Nigeria’s financial system.