In a carefully watched choice, the Central Bank of Nigeria (CBN) has as soon as once more left the Monetary Policy Rate (MPR) unchanged at 27.5 per cent, sustaining its stance for the third consecutive time this 12 months.
The announcement got here on the finish of the 301st Monetary Policy Committee (MPC) assembly held Tuesday in Abuja.
CBN Governor Olayemi Cardoso mentioned the committee’s choice is anchored on the continued battle in opposition to inflation and the necessity to stabilize costs in Africa’s largest economic system.
“The Committee voted unanimously to retain the MPR at 27.5 per cent, with an asymmetric corridor of +500/-100 basis points,” Cardoso informed journalists.
In addition to holding the MPR regular, the CBN maintained different key coverage instruments:
Cash Reserve Ratio (CRR): Remains at 50% for Deposit Money Banks and 16% for Merchant Banks.
Liquidity Ratio: Retained at 30%.
The unchanged stance alerts the apex {bank}’s cautious method in managing the nation’s financial surroundings amid persistent inflationary pressures, significantly within the meals sector.
On the sidelines of the announcement, Cardoso supplied an replace on the continued {bank} recapitalisation effort launched earlier this 12 months.
READ ALSO: CBN Clarifies NRBVN Charges for Diaspora Nigerians, Debunks Hidden Fees Claim
According to him, eight Nigerian banks have to this point met the brand new capital necessities set by the CBN.
Though he stopped wanting naming them, he expressed confidence that extra establishments are on observe to conform earlier than the March 31, 2026 deadline.
Under the directive:
International banks are anticipated to boost their minimal capital to ₦500 billion.
National banks should meet a ₦200 billion threshold.
Regional banks are required to hit ₦50 billion.
Cardoso additionally acknowledged the federal authorities’s efforts in enhancing safety nationwide, noting its ripple impact on meals availability and value stability.
“The MPC recognized that improved security infrastructure can ease agricultural activities and stabilize food prices, a key driver of headline inflation,” he added.
The retention of the MPR underscores the MPC’s dedication to a decent financial coverage stance, whilst issues stay round slowing {economic} development and excessive price of dwelling.
