BREAKING : CBN MPC Maintains Interest Rate at 27.50%

The Central Bank of Nigeria’s Monetary Policy Committee (MPC) has maintained the benchmark interest rate at 27.50 percent.

CBN Governor Olayemi Cardoso announced the decision at the conclusion of the Committee’s 301st meeting held in Abuja on Tuesday.

Cardoso noted that all MPC members unanimously agreed to retain the rate, citing continued moderation in inflation, which stood at 22.22 percent in July.

The Committee also kept the Cash Reserve Ratio (CRR) unchanged at 50 percent for Deposit Money Banks and 16 percent for Merchant Banks.

Additionally, the liquidity ratio was held at 30 percent, while the asymmetric corridor around the Monetary Policy Rate (MPR) remains at +500/-100 basis points.

This marks the third consecutive time the MPC has held the interest rate at 27.50 percent, following similar decisions in February and May.

Economic analysts had speculated on a possible rate cut. Bismarck Rewane, for instance, had forecast a 25 basis point reduction at the July meeting, pointing to rising global inflation and a downward trend in Nigeria’s inflation. Similarly, Segun Ajayi-Kadir, Director-General of the Manufacturers Association of Nigeria, had expressed hopes that manufacturers would benefit from a rate cut.

Meanwhile, as reported by Daily Post, Nigeria’s economy grew to N372.8 trillion in 2024 following the recent rebasing of the Gross Domestic Product (GDP).