The Monetary Policy Committee of the Central Bank of Nigeria on Wednesday retained the benchmark interest rate at 26.5 per cent, citing rising external risks, renewed inflationary pressure, and the need to sustain exchange rate stability.
The CBN Governor, Olayemi Cardoso, announced the decision at the end of the committeeโs 305th meeting held in Abuja. He said, โThe committeeโs decision is as follows: retain the monetary policy rate at 26.5 per cent.โ
The decision also elicited mixed reactions from members of the Organised Private Sector. They acknowledged the justification for retaining interest rates and, on the other hand, cautioned that high rates hamper private sector investment in SMEs and manufacturing, leading to lower output and hampering job creation.
The committee also retained the standing facilities corridor around the MPR at +50/-450 basis points, the Cash Reserve Requirement of Deposit Money Banks at 45 per cent, Merchant Banks at 16 per cent, and non-TSA public sector deposits at 75 per cent.