CBN Retains Monetary Interest Rates At 27.5%

CBN retains interest rate at 27.5% to manage inflation.
Eight Nigerian banks have met recapitalisation requirements, more progressing.
Policy aimed at naira stability and boosting investor confidence.

The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 27.5 percent, reaffirming its commitment to tackling inflation and stabilising the economy.

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EKO HOT BLOG reports that CBN Governor Olayemi Cardoso made this known on Tuesday during a press briefing following the 301st Monetary Policy Committee (MPC) meeting in Abuja. According to Cardoso, the committee unanimously agreed to retain the MPR at 27.5 percent, the Cash Reserve Ratio (CRR) for Deposit Money Banks at 50 percent, CRR for Merchant Banks at 16 percent, and the Liquidity Ratio at 30 percent.

He explained that the decision reflects the committee’s cautious stance on maintaining economic stability and managing inflationary pressures.

“These decisions are aimed at sustaining our efforts to curb inflation and address emerging pressures in the monetary system,” Cardoso said.

On the ongoing recapitalisation of Nigerian banks, the CBN governor disclosed that eight banks have already met the newly set capital requirements, while others are making notable progress.

“Eight banks have so far met the recapitalisation requirements of the CBN, and others are making significant progress toward meeting up,” he stated.

The CBN had earlier mandated banks to raise their capital base to strengthen the financial system and boost support for the real economy.

CBN Retains Monetary Interest Rates At 27.5%

Tuesday’s MPC decisions come amid persistent inflation and foreign exchange volatility, with financial analysts monitoring the apex bank’s policy direction and its potential impact on investor confidence and the stability of the naira.