The Central Bank of Nigeria (CBN) has announced its decision to retain its monetary policies already in place, including the monetary policy rate (MPR) of 27.50% for the second time in a row.
This new rate was announced during the MPC press briefing on Thursday. CBN governor, Yemi Cardoso, while disclosing this decision of the monetary policy committee noted that its decision to maintain all monetary policies is to allow for stability and further improvement of the inflation rate and the economy.
The governor who stated that the bank was currently reviewing the current rebased inflation rate calculated at 24.48% by the National Bureau of Statistics (NBS) noted that across board, the inflation rate was gradually reducing. This is as a result of the stringent monetary policies it has put in place since 2024.
Cardoso further noted that the main objective of the bank at this time is not only to reduce inflation rate, but most importantly to bring it down to a single digit rate.
Beyond the MPR, the other parameters the bank retained include
- Asymmetric corridor around the MPR at +500/-100 basis points.
- Cash Reserve Ratio of Deposit Money Banks at 50.00% and Merchant Banks at 16%.
- Liquidity Ratio at 30.00%
The governor noted that the current stability in the inflation rate is attributed to stability of the FX and gradual moderation in the price of Premium Motor Spirit (PMS).
He continued by agreeing that while food inflation is still on the rise, moderation in food prices is to be expected following the government’s drive to ensure security in the food producing areas across the country.
Cardoso also responded to questions relating to the newly introduced ATM charges which are to take effect from March 1st, 2025.
He stressed that the fees were not placed to merely increase ATM charges but rather as an incentive for banks to set up ATMs for customers’ use. He also stated that the with greater proliferation of ATMs, bank customers will be discouraged from using POS and other unauthorized agents.
