CBN Holds Interest Rate at 26.5% to Curb Inflation

By Ifeyinwa Ike

The Central Bank of Nigeria’s Monetary Policy Committee has retained the Monetary Policy Rate at 26.5% in a move aimed at containing inflationary pressures.

CBN Governor Olayemi Cardoso announced the decision at the end of the committee’s meeting on Wednesday in Abuja.

The committee also retained the Cash Reserve Ratio at 45% for Deposit Money Banks, 16% for Merchant Banks and 75% for non-TSA public sector deposits. The Liquidity Ratio was kept unchanged at 40%, while the asymmetric corridor was adjusted to +50 and -450 basis points around the MPR.

Cardoso said the decision was taken to balance the need for economic growth with macroeconomic and exchange rate stability.

The committee said keeping the rates unchanged would help sustain monetary tightening while it continues to monitor economic growth.