CBN Maintains Caution: MPR Held At 27.5% To Balance Inflation And Growth”

The Central Bank of Nigeria’s Monetary Policy Committee has decided to maintain the current interest rates, keeping the Monetary Policy Rate (MPR) at 27.5%.

This decision was announced by Governor Yemi Cardoso during a press briefing on Thursday.

key takeaways from the committee’s decision:

MPR Remains Unchanged: The MPR stays at 27.5%, with no changes made.

Asymmetric Corridor: The corridor around the MPR remains at +500/-100 basis points.

Cash Reserve Ratio: The ratio for Deposit Money Banks stays at 50%, and for Merchant Banks, it remains at 16%.

Liquidity Ratio: The ratio remains unchanged at 30%.

The MPC’s decision to keep rates steady was unanimous, with the governor stating that it’s too early to consider rate cuts despite the slowing inflation.

Subsequently, this cautious approach aims to balance the need to control inflation with the need to support the economy.