Dr Olayemi Michael Cardoso, acting Governor of CBN
CBN Holds Monetary Policy Rate at 27.5%, Reaffirms Commitment to Economic Stability
The Central Bank of Nigeria (CBN) has maintained its Monetary Policy Rate (MPR) at 27.5%, following a 25-basis-point increase from 27.25%.
The decision was announced by CBN Governor Olayemi Cardoso during a press briefing in Abuja on Thursday after the Monetary Policy Committee (MPC) meeting.
The apex bank also retained the asymmetric corridor around the MPR at +500/-100 basis points. Additionally, the Cash Reserve Ratio (CRR) for Deposit Money Banks remains at 50%, while Merchant Banks will continue to operate with a CRR of 16%.
Governor Cardoso highlighted the committee’s satisfaction with recent macroeconomic developments, including stability in the foreign exchange market, the appreciation of the Naira, and a gradual decline in the price of Premium Motor Spirit (PMS).
However, he expressed concerns over persistent inflationary pressures, particularly driven by rising food prices.
Cardoso reiterated the CBN’s commitment to data-driven decision-making and orthodox monetary policies, which he noted have been effective in gradually reducing inflation.
He affirmed the bank’s goal of bringing inflation down to single digits in the medium term and assured Nigerians of continued vigilance to maintain economic stability.
Addressing the balance between inflation control and economic growth, Cardoso acknowledged the inherent trade-offs but emphasized that current policies are yielding positive results.
He pointed to improvements in Nigeria’s foreign exchange reserves, increased investor confidence, and a more competitive Naira as evidence of progress.
The CBN Governor also discussed the recently launched Nigeria Foreign Exchange Code, which aims to enhance transparency, accessibility, and efficiency in the forex market.
He noted that the elimination of multiple exchange rate windows has helped stabilize the Naira, reducing the disparity between official and parallel market rates to less than 1%.
On the topic of recent changes to Automated Teller Machine (ATM) withdrawal charges, Cardoso clarified that the new policy is designed to improve banking efficiency and expand ATM networks, particularly in rural areas.
He reassured the public that withdrawing cash from one’s own bank remains free, while interbank ATM withdrawals will incur minimal fees.
Cardoso stressed the importance of coordination between monetary and fiscal authorities to sustain economic progress.
He revealed that the recent monetary policy forum included key stakeholders such as the Minister of Finance, the Minister of Budget and Planning, and the Nigerian Governors’ Forum, to align strategies for managing inflation and boosting economic stability.
The CBN Governor urged stakeholders to remain patient and supportive as the bank works toward achieving its long-term economic goals, expressing optimism that ongoing reforms will continue to attract international investors and drive sustainable growth.
About The Author
