CBN Holds Rates at 27.5% for Third Straight Meeting as Inflation Cools
CBN Maintains Hawkish Stance as Inflation Shows Mixed Signals The Central Bank of Nigeria (CBN) kept its key policy rate unchanged at 27.5% for the third consecutive meeting, adopting a cautious approach as inflation shows tentative signs of cooling. Key Decisions:✔ MPR held at 27.5% (unanimous 12-0 MPC vote)✔ CRR maintained at 50% for banks, 16% for merchant banks✔ Liquidity ratio steady at 30%✔ Asymmetric corridor unchanged at +500/-100bps "This pause sustains our disinflation momentum while containing price pressures," said CBN Governor Olayemi Cardoso. Inflation Breakdown: The Good and Bad News 📉 Headline Inflation:• June: 22.22% (down from 22.97% in May)• Driver: Cheaper energy (cooking gas, diesel, charcoal) 📈 Underlying Pressures:• Monthly inflation rose to 1.68% (from 1.53%)• Core inflation jumped to 22.76% (services, housing costs)• Food inflation remains stubbornly high Why the CBN Is Walking a Tightrope 🔍 The Delicate Balance:✅ Progress: 3-month disinflation trend validates tight policy⚠️ Risks: Rising month-on-month and core inflation🎯 Long-game: CBN targets single-digit inflation eventually "Energy price moderation helped, but services and housing […]