Again, CBN Pegs Interest Rate At 27.5%

The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has announced its decision to hold the nation’s benchmark interest rate at 27.50 percent for the second time running.

According to the CBN Governor, Olayemi Cardoso, members of the committee unanimously decided to hold all policy rates around the Monetary Policy Rate (MPR).

Cardoso said the decision was taken “To maintain the momentum of disinflation.”

Meanwhile, the CBN Governor disclosed that eight Nigerian banks have fully met the recapitalisation requirement of the Central Bank while others were working to meet the deadline.

The apex bank boss however did not give details as to the specific banks that have met the requirements.

Addressing journalists at the end of the July edition of the meeting on Tuesday, Cardoso said MPC maintained the current monetary policy stance and hold all policy parameters constant around the MPR.

By that, the MPC retained the asymmetric corridor around the MPR at +500/-100 basis points, retains the Cash Reserve Ratio of Deposit Money Banks at 50 percent and Merchant Banks at 16 percent, and retains the Liquidity Ratio at 30 percent.

The MPC also acknowledged the decline in headline inflation for the third consecutive time.

The committee urged the CBN to maintain a close supervision of the Nigerian banks to maintain the stability of the banking system.