CBN Holds Interest Rate at 27.5% — Cardoso Declares War on Inflation!

The Central Bank of Nigeria (CBN) has opted to retain the Monetary Policy Rate (MPR) at 27.5%, marking the third consecutive time this year that the rate has been held steady.

According to iReporter Online, the announcement was made by the CBN Governor, Olayemi Cardoso, following the conclusion of the Monetary Policy Committee’s 301st meeting held in Abuja on Tuesday. Cardoso stated that the decision reflects the apex bank’s continued efforts to manage inflation and stabilize macroeconomic indicators.

Alongside the MPR, other key policy parameters were also maintained. The asymmetric corridor around the MPR remains at +500/-100 basis points. The Cash Reserve Ratio (CRR) was left unchanged at 50% for Deposit Money Banks and 16% for Merchant Banks, while the Liquidity Ratio was maintained at 30%.

Governor Cardoso emphasized that the MPC’s decision was driven by the need to sustain momentum in combating inflation and addressing emerging monetary pressures. He also acknowledged the federal government’s recent security initiatives and their role in promoting food security across the nation.

In addition, Cardoso disclosed that eight Nigerian banks have already met the recapitalization requirements set by the apex bank. However, he did not identify the banks, noting only that others were making significant progress toward compliance.

The CBN had earlier mandated that banks recapitalize within a 24-month window, from April 1, 2024, to March 31, 2026. Institutions with international authorization must maintain a minimum paid-up capital of ₦500 billion, national banks ₦200 billion, and regional banks ₦50 billion.