The Monetary Policy Committee of the Central Bank of Nigeria has decided to keep the nation’s interest rate steady at 27.50 percent.
The CBN Governor, Olayemi Cardoso, revealed this information following the conclusion of the 301st MPC meeting held in Abuja on Tuesday.
He observed that every member of the MPC unanimously agreed to keep the interest rate steady, given a continued moderation in inflation, which was 22.22 percent in July.
The MPC also maintained the Cash Reserve Ratio (CRR) at 50 percent for Deposit Money Banks and 16 percent for Merchant Banks.
The committee is maintaining the liquidity ratio (LR) at 30 percent and keeping the asymmetric corridor set at +500/-100 basis points relative to the MPR.
This follows the decision by the apex MPC to consecutively maintain interest rates at 27.50 percent in both February and May.
Remember that Bismark Rewane had forecasted a 0.25% interest rate reduction during July’s MPC meeting.
He based his position on the expectation that global inflation would rise while Nigerian inflation would fall.
Additionally, Segun Ajayi-Kadir, the Director-General of the Manufacturers Association of Nigeria, stated that manufacturers expected a reduction in interest rates.
On Monday, it was reported that after rebasing the Gross Domestic Product, Nigeria’s economy grew to N372.8 trillion in 2024.
