LAGOS – The Central Bank of Nigeria (CBN) kept its benchmark interest rate unchanged on Wednesday. The decision comes as policymakers confront external global shocks and a sudden resurgence in domestic consumer prices.
At its 305th Monetary Policy Committee (MPC) meeting, the bank opted to maintain the Monetary Policy Rate (MPR) at 26.5%. The decision successfully matched aggregate market expectations from international financial analysts.
The bank also held tight macro prudential controls, keeping the commercial Cash Reserve Ratio (CRR) at 45%. The liquidity corridor tracking the benchmark rate stayed fixed at +50 and -450 basis points.
Nigeria’s headline inflation recently bucked an eleven-month deceleration trend, quickening to 15.69% in April from 15.38% in March. This reversal was heavily driven by a March fuel price shock linked to Middle East geopolitical conflicts.
The policy pause follows a modest 50-basis-point rate cut in February. It signals a strategic shift toward economic stabilization as soaring global energy prices continue to pressure sub-Saharan Africa’s largest economy.
“The committee decided to keep rates unchanged amid caution over global shocks, particularly uncertainties stemming from developments in the United States,” stated CBN Governor Olayemi Cardoso following the two-day policy meeting.
The steady rate environment aims to protect foreign investment inflows and maintain stable external reserves. Sovereign yields on short-term local debt instruments are expected to remain flat across emerging market portfolios.
