The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has announced a hold on all its monetary policy rates – after months of persistent policy tightening – to pause and monitor economic developments in the near future.
“The consideration is to enable a better understanding of near-term developments,” CBN Governor Olayemi Cardoso stated at a media briefing to announce the outcome of the 300th meeting of the committee in Abuja on Tuesday.
MPC said it was mindful of the easing price of premium motor spirit (fuel), reduction in headline inflation and the record balance of payment in favour of the Nigerian economy.
It, however, acknowledged the persistent foreign exchange pressure and continued inflationary pressure, driven by food inflation, urging security agencies to rise up to the occasion and tame rising insecurity across the country.
Cardoso said the committee expressed concern over the decreased crude oil production amidst falling oil prices largely due to Russian war in Ukraine.
The MPC reaffirmed the continued stability in the banking system and observed the appreciable process in the ongoing banking recapitalisation exercise.