CBN Hits Pause: MPC Holds Interest Rate at 27.5% as Inflation Cools – What’s Next for Nigeria’s Economy?
CBN’s MPC Holds Rates Steady: A Strategic Pause Amid Inflation Slowdown The Monetary Policy Committee (MPC) of Nigeria’s Central Bank (CBN) has opted to maintain its benchmark interest rate at 27.5%, halting months of aggressive tightening. The decision, announced after its 300th meeting in Abuja, reflects cautious optimism as inflation shows signs of easing and foreign exchange (FX) pressures moderate. Key Decisions at a Glance 🔄 Policy Rates Unchanged: Monetary Policy Rate (MPR): 27.5% Cash Reserve Ratio (CRR): 50% (Deposit Banks), 16% (Merchant Banks) Liquidity Ratio: 30% 📉 Inflation Cools: Headline inflation dipped to 23.71% in April (from 24.23% in March), driven by improved food supply and fuel price stability. 💵 FX Market Gains: Narrowing gap between official and parallel market rates signals growing confidence in CBN reforms. Why the Hold? Cardoso’s Strategic Vision CBN Governor Olayemi Cardoso emphasized the pause allows the MPC to “gain clearer insights into evolving macroeconomic dynamics” while anchoring […]
