CBN retains Monetary Policy Rate at 26.5%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to retain the Monetary Policy Rate (MPR) at 26.5 per cent.

 

CBN Governor, Olayemi Cardoso, announced the decision on Wednesday after the 305th MPC meeting held in Abuja, which had 11 members in attendance.

 

According to him, the committee unanimously agreed to maintain all key monetary policy parameters after assessing current economic conditions.

 

“The Committee resolved to retain the Monetary Policy Rate at 26.5 per cent,” Cardoso said.

 

The MPC also retained the asymmetric corridor around the MPR at +500 and -450 basis points, as well as the Cash Reserve Ratio (CRR) for Deposit Money Banks at 45 per cent.

 

For Merchant Banks, the CRR remains at 16 per cent, while that of non-TSA public sector deposits was maintained at 75 per cent.

 

Cardoso said the decision followed a careful review of inflation trends and broader macroeconomic indicators.

 

He noted that although inflation had risen marginally for two consecutive months, the Committee attributed the increase largely to external shocks.

 

“The Committee recognises that the recent uptick in inflation is largely driven by external factors and is transitory in nature,” he said.

 

He added that the MPC remained optimistic that the current macroeconomic environment would support a return to disinflation in the coming months.