The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has once again retained the Monetary Policy Rate (MPR) at 27.50 per cent.
The MPR is a benchmark for interest rates in the country.
The CBN governor, Olayemi Cardoso, declared the committee’s stand on Tuesday after the panel’s 300th meeting in Abuja.
The CBN boss expressed that the committee members in unionism agreed to retain the policy to better understand near-term developments.
The committee maintained the cash reserve ratio (CRR) at 50 per cent and the liquidity ratio at 30 per cent.
“MPC noted the relative improvements in some key macroeconomic indicators expected to support the overall moderation in crisis in the near to medium term.
“These include the progressive narrowing of the gap between the Nigerian foreign exchange market, bureau de change (BDC) windows, the positive balance of payments position and the easy price of PMS.
“The members also noted with satisfaction the progressive moderation in food inflation and, therefore, commended the government for implementing measures to increase food supply, as well as stepping up the fight against insecurity, especially in farming communities.
“The committee thus encouraged security agencies to sustain the momentum while the government provides necessary inputs to farmers to further boost food production,” the CBN governor said on the monetary policy rate.
He added that the MPC noted new policies introduced by the federal government to boost local production, reduce foreign currency demand pressures, and thus lessen the pass-through to domestic crisis,” he said.
“Given the relative stability observed in the foreign exchange market, members urged the bank to sustain the implementation of the ongoing reforms to further boost market confidence,” he said.
Monetary policy rate increased in 2024
New Daily Prime earlier reported that the CBN increased the MPR to 27.25 per cent in September 2024.
According to a statement, the decision was made during the Monetary Policy Committee (MPC) meeting chaired by CBN Governor, Yemi Cardoso.
In July 2024, the CBN raised its MPR by 800 basis points to 26.75 percent, up from 13 percent in May 2022.
Stressing that the move will help improve confidence, and enable economic agents to plan in the medium to long term, the CBN governor said,
