CBN retains interest rate at 27.50%

Omeiza Bilal

The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has retained the interest rate at 27.50 percent.

The Apex Bank also retained the  Cash Reserve Ratio (CRR) at 50 basis points, the Liquidity Ratio at 30 percent and the asymmetric corridor at +500/-100 basis points around the MPR.

The Apex Bank’s decision is coming several days after National Bureau of Statistics (NBS) released a rebased Consumer Price Index

Briefing journalists after the committee’s meeting Thursday in Abuja, CBN Governor Yemi Cardoso, said the Bank took the decision following the decline in inflation rate from 34.8 per cent in December to 24.48 per cent in January.

According to the Apex Bank Governor, recent macroeconomic developments also influenced the committee’s decision. 

He said, “…is expected to positively impact price dynamics in the near to medium term. These include the stability in the foreign exchange market with the resultant appreciation of the exchange rate and the gradual moderation in the price of Premium Motor Spirit (PMS). Members, however, were not oblivious of the risk of persisting inflationary pressures driven largely by food prices.

“The Committee noted the recent rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS) which reviewed the weights of items in the consumption basket to reflect current consumption patterns. The Committee further noted that as the Federal Government continues to improve security in food producing communities, supported by other measures to enhance food supply, food prices are expected to continue to moderate,” he said.