Nigeria Central Bank maintains benchmark interest rate amid modest inflation decline.
The Central Bank of Nigeria (CBN) has held its benchmark interest rate at 27.50% for the third consecutive meeting, emphasizing its commitment to controlling inflation. Governor Olayemi Cardoso stated that while consumer inflation eased to 22.22% in June from 22.97% in May, more time is needed to drive it into single digits.
He attributed the disinflation trend to stabilizing forex rates and lower global energy costs. Despite improvement, Cardoso warned that external economic shocks and geopolitical tensions may sustain underlying inflationary pressures.
The decision aligns with market expectations and follows aggressive rate hikes launched in 2024 to tame inflation, which had reached multi‑decade highs. The CBN pledges to continue this cautious stance until the inflation trend firmly settles downward.
Analysts believe that maintaining tight monetary policy could restrain growth short‑term, but is vital for restoring macroeconomic credibility. As Nigeria prepares for political transitions ahead of 2027, economic stability remains a key backdrop to political messaging.
I’m Adedayo Obadina
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