CBN retains interest rate at 27.5%

The Central Bank of Nigeria (CBN) has decided to maintain the Monetary Policy Rate (MPR) at 27.5 percent, keeping all key policy parameters unchanged in a move aimed at sustaining macroeconomic stability.

CBN Governor, Mr. Olayemi Cardoso, made the announcement during the Monetary Policy Committee (MPC) briefing held in Abuja on Tuesday afternoon.

According to the governor, the asymmetric corridor around the MPR remains at +500/-100 basis points. Additionally, the Cash Reserve Ratio (CRR) for Deposit Money Banks stays at 50 percent, while the Liquidity Ratio holds steady at 30 percent.

Mr. Cardoso explained that the decision to maintain the current MPR was premised on the need to continue to ensure the ongoing disinflation while vigorously ensuring declining prices.

The CBN boss revealed that as of July 18, the nation’s foreign reserve stood at 40.1 billion, which could provide import cover of nine and a half months.

He also disclosed that eight banks had achieved the new recapitalisation requirements.

The governor said the monetary and fiscal authorities would continue to work together to reduce the nation’s inflation rate to a single digit.