CBN Retains Interest Rate at 27.5%, Confirms Eight Banks Have Met Recapitalisation Target

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to retain the benchmark interest rate at 27.5% for the second consecutive time, as part of ongoing efforts to sustain the momentum of disinflation.

Speaking at the end of the MPC’s July meeting in Abuja on Tuesday, CBN Governor Olayemi Cardoso said the decision to hold all policy parameters constant was unanimous among committee members.

“To maintain the momentum of disinflation, the MPC voted to keep all monetary policy parameters unchanged,” Cardoso said.

With the decision, the MPC maintained the asymmetric corridor around the Monetary Policy Rate (MPR) at +500/-100 basis points. The Cash Reserve Ratio (CRR) for Deposit Money Banks remains at 50%, 16% for Merchant Banks, and the Liquidity Ratio is retained at 30%.

Governor Cardoso also disclosed that eight Nigerian banks have fully met the apex bank’s recapitalisation requirement, with others still working toward meeting the deadline. He, however, did not name the banks.

The MPC noted a continued decline in headline inflation for the third consecutive month and urged the CBN to strengthen its oversight of financial institutions to safeguard the stability of the banking sector.