The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) has decided to retain the country’s benchmark interest rate at 27.50% in January, maintaining the same rate set in November 2023 amid a slight decline in inflation.
CBN Governor Olayemi Cardoso announced the decision during a press briefing in Abuja on Thursday following the 299th MPC meeting.
He stated that the decision to hold the rate was influenced by the recent moderation in inflation, which dropped 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 declared.
In addition to keeping the Monetary Policy Rate (MPR) unchanged, the committee also maintained the Cash Reserve Ratio (CRR) at 50 basis points, the liquidity ratio (LR) at 30%, and the asymmetric corridor at +500/-100 basis points around the MPR.
This marks the first time the CBN has paused interest rate hikes since Cardoso assumed office in September 2023. In recent months, financial experts and economists, including the Centre for the Promotion of Private Enterprise (CPPE), have advocated for a rate pause to ease pressure on businesses and economic growth.
The decision follows the National Bureau of Statistics' (NBS) latest report, which revealed that Nigeria’s headline inflation dropped to 24.48% in January from 34.80% in December, while food inflation declined to 26.08% from 39.93% over the same period.
The move is expected to provide some relief to businesses and investors, as the country continues to navigate economic uncertainties while balancing inflation control and growth.