The Central Bank of Nigeria has paused interest rate hikes, holding the Monetary Policy Rate steady at a record 27 per cent.

The bank’s Monetary Policy Committee made the decision to keep all key rates unchanged at its latest meeting in Abuja.

The benchmark rate remains high as the CBN aggressively tackles inflation and works to restore investor confidence.

Key highlights of the 303rd CBN MPC meeting

MPR retained at 27.00 per cent; Cash Reserve Ratio retained at 45.00 per cent for DMBs and retained 16.00 per cent for Merchant Banks, respectively.

Retained 75 per cent CRR on Non-TSA public sector deposits;
Liquidity Ratio left unchanged at 30.0 per cent.

Asymmetric Corridor adjusted by +50/-450 basis points around the MPR.

Governor Cardoso stated the hold decision reflects the committee’s view that current policy is working.

He pointed to moderating inflation and improved FX liquidity as positive signs. While acknowledging persistent pressures, he affirmed that maintaining the 27 per cent rate is crucial to solidify the downward trend in prices and stabilize market expectations.

The CBN Governor reported that the decision was backed by a large majority of MPC members.

During the meeting, the committee also fine-tuned other monetary tools to improve their effectiveness.

Specifically, it adjusted the standing facilities corridor to +50/-450 basis points around the MPR.

This change narrows the upper band while widening the lower band, granting the CBN more flexibility in managing overnight lending and deposit rates.

The Committee also voted to maintain the Cash Reserve Ratio at 45 per cent for commercial banks and 16 per cent for merchant banks, reinforcing its commitment to effective liquidity management.