The Central Bank of Nigeria (CBN) has announced that it will maintain the country’s benchmark interest rate at 27%, following the conclusion of its latest Monetary Policy Committee (MPC) meeting. The decision comes amid persistent inflationary pressures, tight liquidity conditions, and ongoing efforts to stabilize the national economy.
According to officials at the meeting, the committee carefully reviewed current economic indicators before deciding to keep the Monetary Policy Rate (MPR) unchanged. The CBN noted that although inflation remains elevated, stabilizing the interest rate for now is necessary to consolidate previous tightening measures and prevent further shocks to the financial system.
The bank explained that recent inflation trends—driven primarily by high food prices, increased transportation costs, and foreign exchange instability—required a cautious approach rather than an aggressive shift in monetary policy. By holding the rate at 27%, the CBN aims to maintain a balance between controlling inflation and sustaining the flow of credit to key sectors of the economy.
Financial analysts say the decision signals the apex bank’s continued commitment to combating inflation through sustained tightening, even as businesses and households grapple with rising borrowing costs. The high interest rate environment has made loans more expensive, affecting small and medium enterprises, mortgage seekers, and manufacturers dependent on credit.
The CBN, however, assured Nigerians that ongoing monetary interventions are aimed at restoring long-term stability. Officials highlighted efforts to boost foreign exchange inflows, strengthen the banking system, and support productive sectors that can help moderate inflation over time.
Market observers are now watching how this decision will shape investment sentiment, foreign exchange movements, and inflation figures in the coming months. Meanwhile, commercial banks are expected to maintain higher lending rates in line with the retained benchmark.
The CBN emphasized that it will continue to monitor economic developments closely and adjust interest rates if necessary to safeguard price stability and promote sustainable growth.