Katsinatimes
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has adjusted the Monetary Policy Rate (MPR) to 23.00 per cent, following its 307th meeting, while retaining the Cash Reserve Requirement (CRR) for deposit money banks, merchant banks and non-TSA public sector deposits.
The committee also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR, maintaining its focus on improving monetary policy transmission and strengthening the effectiveness of its framework.
CBN Governor, Olayemi Cardoso, said the decision was an operational reset rather than a change in policy direction, stressing that the move was aimed at aligning market rates with the monetary policy framework and reinforcing the role of the MPR as the key policy benchmark.
According to the governor, recent economic indicators showed positive developments, including improved external balances, exchange rate stability, stronger economic growth and better inflation expectations.
He noted that Nigeria recorded a balance of payments surplus of $3.51 billion in the second quarter of 2026, while the current account surplus stood at $7.54 billion during the same period.
The economy also recorded real Gross Domestic Product (GDP) growth of 4.43 per cent, with the Purchasing Managers’ Index (PMI) rising to 52.7 in August. External reserves increased to $55.25 billion, representing about 11.3 months of import cover.
The MPC attributed the recent moderation in inflation to previous monetary policy tightening measures, sustained exchange rate stability and improved inflation expectations.
The committee also commended ongoing economic initiatives, including the successful recapitalisation of the banking sector, the National Affordable CNG Transit Programme and the Memorandum of Understanding between the Federal Ministry of Finance and the CBN on fiscal and monetary policy coordination.
Reflecting on reforms introduced under his leadership in the past three years, Cardoso said the apex bank had prioritised restoring confidence in the financial system, improving monetary policy credibility, reforming the foreign exchange market, rebuilding external reserves, increasing diaspora remittances and strengthening the banking sector.
The CBN governor further reiterated the bank’s commitment to remaining apolitical and assured that it would continue to effectively manage money supply during the election period.
He said the apex bank would remain focused on data-driven monetary policy decisions, financial system stability and reforms aimed at building a stronger and more resilient Nigerian economy.
Photo: CBN
Comments (0)
No comments yet. Be the first to share your thoughts!