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Citing the need to sustain disinflation and sufficiently contain price pressures, the Central Bank of Nigeria (CBN) on Tuesday announced the retention of the Monetary Policy Rate (MPR) at 27.5%, for the seventh time an outcome of the 301st Monetary Policy Committee (MPC) meeting held in Abuja.

The MPR, which serves as the anchor interest rate, has remained a key tool in the apex bank’s continued efforts at reining in inflation, but in recent months, remained above the CBN’s comfort zone.

The decision was however at variance with expectations of some analysts and entrepreneurs who were looking forward to tempering with the anchor rate, for which the prevailing rate had made cost of funds unbearably high for businesses

Be that as it may, the decision to maintain the rates would mean businesses and consumers will continue to navigate the challenging macroeconomic environment.

However, CBN Governor, Olayemi Cardoso, who briefed journalists after the meeting, said the committee’s decision to hold the rate steady was based on the need to sustain the disinflationary trend in the economy.

“The decision was premised on the need to sustain disinflation and sufficiently contain price pressure,” Cardoso stated, highlighting the committee’s cautious optimism over recent economic indicators.

Interestingly, all the members of the MPC voted unanimously to maintain the MPR at 27.5%, signaling a unified stance among policymakers amid lingering inflationary pressures and exchange rate volatility.

Other key decisions made by the MPC were, the retention of CRR at 50% for Deposit Money Banks and Merchant Banks at 16% , Asymmetric corridor around the MPR at +500/-100 basis points and the Liquidity ratio unchanged at 30%.

The CBN Governor stated that maintaining the current policy stance will continue to address existing and emerging inflationary pressure.

He said, ‘’Maintaining the current policy stance will continue to address existing and emerging inflationary pressure. The MPC will continue to undertake rigorous assessment of economic conditions, price developments and outlook to inform future policy decisions.’’