The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) has retained the country’s benchmark interest rate at 27.50% in its January meeting, maintaining the same rate set in November 2023 despite a decline in inflation.
CBN Governor Olayemi Cardoso announced the decision on Thursday in Abuja after the 299th MPC meeting. He stated that the pause in rate hikes was necessary following the recent drop in inflation, which fell to 24.48% in January after the Consumer Price Index (CPI) rebase.
“The members of the MPC unanimously agreed to retain the interest rate at 27.50%,” Cardoso said.
Other monetary policy parameters were also left unchanged, with the Cash Reserve Ratio (CRR) at 50%, the Liquidity Ratio (LR) at 30%, and the asymmetric corridor at +500/-100 basis points around the Monetary Policy Rate (MPR).
This marks the first pause in interest rate hikes since Cardoso assumed office in September 2023, aligning with calls from economists and financial experts for a policy pause. The Centre for the Promotion of Private Enterprise has been among the leading advocates for a halt in rate increases.
On Tuesday, the National Bureau of Statistics (NBS) reported a decline in Nigeria’s inflation rate, with headline inflation dropping to 24.48% in January from 34.80% in December, while food inflation fell to 26.08% from 39.93%.
