Businesses and economic experts have thrown their weight behind the Central Bank of Nigeria’s (CBN) decision to retain the Monetary Policy Rate (MPR) at 26.5%, describing the move as a measured response aimed at sustaining the fight against inflation while preserving macroeconomic stability.
The decision, announced after the Monetary Policy Committee (MPC) meeting, keeps Nigeria’s benchmark interest rate unchanged amid persistent inflationary pressures and ongoing efforts to stabilise the foreign exchange market.
Several economists said maintaining the rate reflects the apex bank’s cautious approach, arguing that a premature cut could undermine recent gains in price and exchange rate stability. They noted that while high borrowing costs continue to weigh on businesses, keeping the rate steady provides investors and financial markets with greater policy certainty.
Business groups also acknowledged the challenges posed by elevated lending rates but said policy consistency is crucial as the economy navigates inflation and external economic uncertainties. They urged the CBN to complement its monetary measures with policies that improve access to affordable credit for productive sectors.
Analysts believe the decision signals the central bank’s determination to keep inflation under control before considering any monetary easing, even as manufacturers and small businesses continue to call for lower financing costs to stimulate investment and economic growth.
The CBN has maintained that its monetary policy stance is focused on restoring price stability, strengthening investor confidence and supporting sustainable economic growth.
