Nigeria’s central bank left its Monetary Policy Rate (MPR) unchanged at 27.5% on Tuesday, its third straight hold this year, and signalled it will keep policy tight until inflation risks fade.
Governor Olayemi Cardoso told reporters after the Monetary Policy Committee (MPC) meeting that the decision “aims to sustain the disinflation trend” and ultimately drive consumer‑price growth below 10%.
Annual inflation slowed for a third month in June to 22.22%, down from 22.97% in May, helped by softer energy costs and a steadier naira. While month‑on‑month prices edged higher, Cardoso said the current stance “continues to address existing and emerging pressures” amid global geopolitical and trade uncertainties.
The hold was widely expected: most economists polled by Reuters predicted the bank would pause after six hikes in 2024 pushed the MPR up by 750 basis points. Those increases followed President Bola Tinubu’s market‑friendly reforms, including fuel‑subsidy removal and a series of naira devaluations, which initially sent inflation to 28‑year highs.
The World Bank has urged Abuja to maintain tight monetary and disciplined fiscal policies, warning that stubbornly high prices remain a threat to growth.