THE cost of funds for businesses remains unchanged as the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the country’s monetary policy rate at 27 per cent.
The CBN Governor, Olayemi Cardoso, announced this on Tuesday, November 25, at a press conference during the Committee’s 303rd meeting in Abuja.
The Monetary Policy Rate (MPR) serves as the baseline interest rate in an economy; other interest rates used within the economy are built on it.
The Committee also said it was committed to maintaining a tight monetary stance.
The MPC pegged the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks, 16 per cent for merchant banks, and 75 per cent on non-TSA public sector deposits.
It also maintained the Liquidity Ratio (LR) at 30 per cent, adjusting the Standing Facilities Corridor to +50 / -450 basis points around the MPR.
According to the Committee, the decisions reflect its focus on achieving low and stable inflation, as it welcomed the continued deceleration in headline inflation, driven by sustained monetary tightening, a stable exchange rate, and stable Premium Motor Spirit prices.
The MPC also noted that inflation remained high, requiring continued and coordinated policy efforts to bring it down further
It acknowledged progress in bank recapitalisation, confirming that 16 banks had met regulatory requirements.
On the global outlook, the CBN governor emphasised a recovery in the medium term, although trade tensions between the United States and key trading partners might constrain growth.
The MPC also projected that global inflation would remain above pre-pandemic levels in the near term.
It also reaffirmed commitment to evidence-based monetary policy to safeguard price stability and strengthen financial system resilience.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.