The Central Bank of Nigeria’s Monetary Policy Committee has decided to keep the country’s interest rate at 27.50 percent as of January, unchanged from November of the previous year, in light of a decrease in inflation.
Additionally, the Cash Reserve Ratio (CRR) remains at 50 basis points, the liquidity ratio (LR) is set at 30 percent, and the asymmetric corridor is maintained at +500/-100 basis points around the Monetary Policy Rate (MPR). Other monetary policy measures have also been kept the same.
CBN Governor Olayemi Cardoso announced these decisions during a press conference following the 299th MPC meeting in Abuja.
He explained that the decision to hold the rate steady was influenced by the recent decline in inflation, which fell to 24.48 percent in January after the Consumer Price Index was adjusted.
“The members of the MPC unanimously agreed to maintain the interest rate at 27.50 percent,” he stated.
This marks the first halt in interest rate increases since Cardoso assumed office in September 2023.
In recent months, economists and financial experts have advocated for a pause in interest rate hikes.
The Centre for the Promotion of Private Enterprise has been a strong proponent of this call for a pause in the country’s interest rate increases.
It’s worth noting that on Tuesday, the National Bureau of Statistics reported a decline in Nigeria’s headline and food inflation rates, which fell to 24.48 percent and 26.08 percent in January, down from 34.80 percent and 39.93 percent in December of the previous year.
