JUST IN: CBN MPC Pauses Rate Hikes to Assess Near-Term Economic Trends
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to maintain current monetary policy rates, opting for a strategic pause after months of aggressive tightening. The decision aims to provide space to evaluate evolving economic conditions in the short term.
“The consideration is to enable a better understanding of near-term developments,” said CBN Governor Olayemi Cardoso during a press briefing held after the MPC’s 300th meeting on Tuesday in Abuja.
The committee noted positive economic indicators, including a decline in the pump price of premium motor spirit (fuel), a reduction in headline inflation, and a favourable balance of payments.
However, the MPC also highlighted ongoing challenges such as persistent pressure on the foreign exchange market and elevated inflation levels, largely driven by rising food prices. It called on security agencies to intensify efforts to address the growing insecurity impacting food production and distribution.
Governor Cardoso further expressed the committee’s concern over declining crude oil output, exacerbated by global market uncertainties stemming from the war in Ukraine.
Despite these challenges, the MPC reaffirmed the resilience of Nigeria’s banking sector and acknowledged the progress made in the ongoing banking recapitalisation initiative.
