In a strategic move to keep inflation in check, the Central Bank of Nigeria (CBN) has decided to retain its benchmark interest rate known as the Monetary Policy Rate (MPR) at 27.5%.
The announcement was made by CBN Governor, Olayemi Cardoso, during the Monetary Policy Committee (MPC) briefing held in Abuja. Alongside the MPR, all other monetary parameters remain unchanged.
The apex bank maintained the asymmetric corridor at +500/-100 basis points around the MPR, kept the Cash Reserve Ratio (CRR) for Deposit Money Banks at 50%, and held the Liquidity Ratio steady at 30%.
According to Governor Cardoso, this decision aims to reinforce the ongoing efforts to reduce inflation and stabilize prices in the Nigerian economy. He noted that monetary authorities remain focused on disinflation as a key policy goal.
In his address, Cardoso also revealed that Nigeria’s foreign reserves had risen to $40.1 billion as of July 18 enough to cover the country’s import needs for nine and a half months, a notable indicator of economic resilience.
On the financial sector front, he confirmed that eight Nigerian banks have already met the new recapitalisation requirements set by the CBN, signaling positive momentum in the banking industry.
Governor Cardoso emphasized that both fiscal and monetary policy bodies will continue to work hand-in-hand to bring inflation down to single-digit territory, which remains a core objective of the central bank.
