The Central Bank of Nigeria (CBN) has raised its benchmark Monetary Policy Rate (MPR) by 50 basis points to 27.25% at the conclusion of its 298th Monetary Policy Committee (MPC) meeting in Abuja, Governor Yemi Cardoso announced on Tuesday.
This marks the seventh consecutive rate increase since the CBN began its aggressive monetary tightening cycle in May 2023, bringing cumulative hikes to 1,750 basis points. The decision was unanimous among the 12 committee members present.
"The committee observed that while recent data shows inflationary pressures are beginning to moderate, headline inflation remains unacceptably elevated at 31.7% and requires continued policy vigilance," Cardoso stated at the post-meeting press conference.
The Cash Reserve Ratio (CRR) was maintained at 45% for commercial banks and 14% for merchant banks, while the Asymmetric Corridor was retained at +100/-700 basis points around the MPR.
Analysts at Stanbic IBTC projected that the decision could push the average commercial bank lending rate above 34%, potentially slowing credit growth to the real sector. "The balance between containing inflation and supporting growth is increasingly delicate," said Muyiwa Oni, Head of Equity Research at Stanbic IBTC.
The naira responded positively to the announcement, appreciating by ₦24 against the dollar at the EFEMS window to close at ₦1,578/$1, its strongest level in six weeks.