The Monetary Policy Committee (MPC) has cut its benchmark Monetary Policy Rate (MPR) by 50 basis points to 27%, maintaining its firm stance against inflationary pressures in the economy.
In line with this, the asymmetric corridor around the MPR was retained at +250 and -250 basis points, signaling the Committee’s continued preference for tight monetary conditions to anchor inflation expectations.
On prudential ratios, the Cash Reserve Ratio (CRR) remains at 45% for Commercial Banks and 16% for Merchant Banks, reflecting the Bank’s commitment to mopping up excess liquidity in the system. The Liquidity Ratio was also held steady at 30%, further tightening financial system conditions.
The Committee reiterated its resolve to balance price stability with financial system soundness, noting that while inflation has shown signs of moderation, sustaining policy consistency remains crucial for long-term stability.
