ABUJA – Nigeria’s Central Bank (CBN) has decided to keep its main interest rate at 27.5 percent. CBN Governor Olayemi Cardoso made this known on Tuesday. The decision came after the Monetary Policy Committee’s 300th meeting in Abuja. All committee members supported keeping the rate unchanged.
This action on the interest rate shows the bank is watching the economy closely. The CBN wants to see how earlier rate increases are working. Those past increases were made to fight rising prices in Nigeria. The Nigeria economic policy aims for more stable prices for everyone.
Why the CBN Held the Rate Steady
The committee saw some hopeful signs. Inflation, which is how fast prices rise, slowed a little in April to 23.7 percent. This small improvement gives the CBN a reason to pause and check progress. Governor Cardoso said the committee wants to secure these small gains.
Still, high food prices worry many people. The CBN is trying to balance controlling inflation with helping the economy grow. By not changing the interest rate now, the bank believes its current plans will have more time to help. The bank also kept other financial settings, like the Cash Reserve Ratio for banks, the same.
What This Means for Your Money and Nigeria
A steady interest rate can make planning easier for businesses and people thinking about loans. It can also help keep the Naira’s value more stable and affect the prices you pay in shops. The Central Bank is carefully watching how things develop. It hopes that the inflation update in Nigeria will show further improvement. Future decisions on the CBN interest rate will depend on new information about prices and economic growth.
By Abiodun Labi
