BREAKING: CBN Freezes Interest Rate At 27.5% – What This Means For Nigeria’s Economy

The Central Bank of Nigeria (CBN) has decided to maintain the Monetary Policy Rate (MPR) at 27.5%, reinforcing its ongoing efforts to combat inflation and ensure economic stability.

CBN Governor Olayemi Cardoso announced the decision on Tuesday during a press briefing following the 301st meeting of the Monetary Policy Committee (MPC) held in Abuja.

He stated that the committee unanimously agreed to retain the MPR at 27.5%, the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks, while keeping the Liquidity Ratio unchanged at 30%.

Cardoso explained that the move reflects a cautious stance aimed at managing monetary pressures and preserving price stability.

“These measures are intended to reinforce our commitment to curbing inflation and stabilising the financial system,” he said.

On the recapitalisation of Nigerian banks, Cardoso revealed that eight banks have already met the new capital requirements imposed by the apex bank, while others are making commendable progress.

The recapitalisation directive, issued earlier by the CBN, is intended to strengthen the resilience of the banking sector and enhance its ability to support the real economy.

This latest MPC decision comes at a time of persistent inflation and currency volatility, with analysts and stakeholders closely observing the CBN’s strategies to stabilise the naira and restore investor confidence.