BusinessNewsNigeriaCBN Maintains 27.5 Per Cent Interest Rate to Tackle Inflation

The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 27.5 per cent, following six consecutive hikes last year.

This decision comes amidst observed stability in the foreign exchange market and a gradual decline in inflation rates.

CBN Governor, Olayemi Cardoso, addressed the press in Abuja, expressing satisfaction with recent macroeconomic trends.

He noted, “Inflation is trending down, and it’s looking positive,” emphasising the bank’s objective to reduce inflation to single-digit figures. Cardoso also highlighted that while the outlook is optimistic, food prices remain a potential risk to inflation.

In January, a recalibration by the National Bureau of Statistics reported an annual inflation rate of 24.48 per cent. This adjustment has influenced the CBN’s current stance on the MPR.

Governor Cardoso stated that the bank would continue to analyze forthcoming inflation data to refine its perspective on inflationary trends.

The CBN’s decision aligns with President Bola Tinubu’s economic reforms aimed at stimulating growth and enhancing public finances.

These reforms have led to record-high inflation rates, although economic growth remains below the targeted 6 per cent. An upcoming reassessment of economic indicators, including Gross Domestic Product (GDP), is anticipated to further influence the inflation outlook.

Governor Cardoso concluded by urging Nigerians to remain confident, stating, “We can see that confidence is gradually returning to our markets, which shows that we are on the right course now.” He reaffirmed the CBN’s commitment to achieving economic stability and reducing inflationary pressures.

By Ezinwanne Onwuka (Senior Reporter)
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