The Central Bank of Nigeria (CBN) kept its benchmark interest rate at 26.5% on Tuesday, marking a second consecutive hold as policymakers weigh stubborn inflation against signs of easing in consumer prices.
CBN Governor Olayemi Cardoso announced the decision at the conclusion of the Monetary Policy Committee’s 306th meeting in Abuja, saying simply that the committee would “retain the monetary policy rate at 26.5 percent.”
The rate was last cut by 50 basis points in February.
The move comes even as headline inflation showed a marginal decline, according to the National Bureau of Statistics. Nigeria’s consumer-price index eased to 15.91% in June from 15.93% in May, the first dip after three straight monthly increases that lifted inflation from 15.06% in February to 15.93% in May.
NewsQuest reports that the committee’s decision followed cautious debate among MPC members over whether to press for further easing amid slower price growth or hold policy tight to anchor expectations. cent in May.
