CBN interest rate hold sees MPC retain 27 per cent as policymakers adopt a cautious stance amid fragile economic indicators

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, on Tuesday announced that the Monetary Policy Committee had maintained the benchmark interest rate at 27 per cent, extending its CBN interest rate hold as members concluded that prevailing economic conditions did not yet justify further easing.

Also read: Imo Governor Projects $1tn Gain from Economic Summit

Cardoso delivered the decision at the end of the committee’s 303rd meeting in Abuja.

He said the policymakers reached their conclusion by a majority vote, adding that the body remained wary of moving too quickly after its surprise 50-basis-point cut in September.

That reduction was the first since the tightening cycle began under the current CBN leadership.

The governor noted that inflationary pressures had begun to moderate but were not yet sufficiently subdued to allow another rate cut.

His remarks underscored a cautious mood within the committee, which has now held the rate steady for the fourth consecutive time this year.

Nigeria endured six rate hikes in 2024 as the authorities struggled to contain soaring prices and a volatile exchange rate.

Cardoso said the current environment still required vigilance, even though the bank had seen early signs of stabilisation across several indicators.

The decision comes as households and businesses continue to grapple with high borrowing costs, while investors watch for clearer signals on the direction of monetary policy.

Financial analysts said the hold reflected a desire to protect the fragile gains recorded in recent months, describing the committee’s stance as a prudent, if conservative, approach.

More details are expected from the CBN’s post-meeting briefing notes, which will outline members’ assessments of the domestic and global economic climate.

Also read: Imo Governor Projects $1tn Gain from Economic Summit

Policymakers are likely to face calls for a more growth-friendly stance in the coming months as the country seeks a stronger recovery.