Following a unanimous vote of the Monetary Policy Committee (MPC), the Central Bank of Nigeria (CBN) has decided to maintain all parameters, keeping the MPR at 27.50%.
Following the rebasing of the consumer price index (CPI), this decision aims to maintain stability.
Following the committee’s 299th meeting, CBN Governor Olayemi Cardoso made the announcement at a media briefing in Abuja on Thursday, stating that the MPC had evaluated recent macroeconomic developments, including the stabilization of exchange rates and the gradual slowdown in fuel price increases.
The committee decided that maintaining rates steady was the best course of action.
The National Bureau of Statistics (NBS) recently updated the Consumer Price Index (CPI), which changed the consumption basket’s weighting to reflect current spending patterns, said Cardoso.
Reports of inflation were lowered from 34.48% in January to 24.48% as a result of the CPI’s rebasing. However, underlying price pressures remain high.
Since the start of 2024, the CBN has aggressively increased rates in an effort to rein in inflation and stabilize the naira.
The central bank may choose to wait to assess the effects of those increases rather than to commit to even greater tightening, according to this most recent ruling.
Source: Per Second News
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