JUST IN: 8 banks meet new CBN recapitalisation, MPC maintains 27% lending rate

JUST IN: 8 banks meet new CBN recapitalisation, MPC maintains 27% lending rate

The Central Bank of Nigeria (CBN) has retained the benchmark Monetary Policy Rate (MPR) at 27.5 per cent as inflation is losing its grip on the Nigerian economy.

The CBN governor, Olayemi Cardoso, conveyed the decision on Tuesday at the 301st Monetary Policy Committee meeting held in Abuja.

Cardoso said the committee decided to maintain the current monetary policy stance.

Cardoso said, “All 12 members of the committee were in attendance. The committee maintains the current monetary policy stance of holding all policy parameters constant, as follows: One, retain the Monetary Policy Rate at 27.50 per cent, to the asymmetric corridor around the MPR at plus 500 to minus basis points.

“Retain the Cash Reserve Ratio, for deposit money banks at 50 per cent and for merchant banks at and four, keep the liquidity ratio unchanged.”

Recall that the committee decided at the 300th meeting of the MPC held on 19th and 20th May 2025, to retain the MPR at 27.50 per cent.

The bank also retained the asymmetric corridor around the MPR at +500/-100 basis points and retained the Cash Reserve Ratio of Deposit Money Banks at 50.00 per cent and Merchant Banks at 16 per cent.

The 300th MPC decision was hinged on the relative improvements in some key macroeconomic indicators, which are expected to support the overall moderation in prices in the near to medium term.

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However, in its fresh decision, the apex bank governor said the decision was made to sustain the continuous fight against inflation.

Cardoso said, “Maintaining the current policy stance will continue to address the existing and emerging inflationary pressure.

The MPC will continue to undertake rigorous assessment of economic conditions, price development and outlook to inform future policy decisions.”

On the consideration, the apex bank boss said the committee noted the decline in headline inflation in June 2025, the third consecutive month of deceleration.

“This was largely driven by the moderation in energy prices and stability in the foreign exchange market,” he said adding, “Despite these positive developments, members observed the uptick in month-to-month headline inflation, suggesting the persistence of underlying price pressures.”

He noted that continued global uncertainties with the tariff wars and geopolitical tensions could further exacerbate supply chain disruption and exert pressure on the prices of imported items.

The apex bank boss disclosed that eight banks have met the new recapitalization requirement and expressed confidence in the banking sector.

Cardoso said, “MPC also noted the continued stability in the banking system, evidenced by the stable financial soundness indicators (FSIs) which the ongoing banking recapitalization exercise would further support.

“The MPC noted that eight banks have fully met the recapitalisation requirements, while others are making progress towards meeting the deadline.

“The committee urged the management of the bank to sustain its oversight of the banking system to ensure continued resilience, safety and soundness of the financial system.”

JUST IN: 8 banks meet new CBN recapitalisation, MPC maintains 27% lending rate