Following the conclusion of its 301st Monetary Policy Committee (MPC) meeting which was held on Tuesday, the Central Bank of Nigeria (CBN) has announced the retention of the Monetary Policy Rate (MPR) at 27.5%.

Speaking after the meeting, CBN Governor, Dr. Olayemi Cardoso, said the committee’s decision to retain the rate was based on the need to sustain the disinflationary trend in the economy.

“The decision was premised on the need to sustain disinflation,” Cardoso stated, highlighting the committee’s cautious optimism over recent economic indicators.

All 12 members of the MPC voted unanimously to maintain the MPR at 27.5%, signaling a unified stance among policymakers to maintain the interest rate amid sustained moderation in the inflation rate, which stood at 22.22 percent in July, amid lingering inflationary pressures and exchange rate volatility.

MPC also retained the Cash Reserve Ratio (CRR) at 50 percent for Deposit Money Banks and 16 percent for Merchant Banks, and the liquidity ratio (LR) at 30 percent and the asymmetric corridor at +500/-100 basis points around the MPR.

Analysts had been divided ahead of the meeting, with some expecting a marginal hike to strengthen the naira and others predicting a hold decision due to concerns over sluggish economic growth.

The CBN’s decision to hold rates suggests a focus on balancing inflation control with economic stability, as businesses and consumers continue to navigate a challenging macroeconomic environment.

The MPR, which serves as the benchmark interest rate, has remained a key tool in the apex bank’s efforts to rein in inflation, which, while slowing in recent months, remains above the CBN’s comfort zone.