CBN Holds 302nd MPC Meeting as CPPE Demands Rate, Reserve Ratio Cuts

|By Adejumo Adekunle

The Central Bank of Nigeria (CBN) will on Monday open its 302nd Monetary Policy Committee (MPC) meeting in Abuja, amid mounting calls from the Centre for the Promotion of Private Enterprise (CPPE) for a reduction in interest rates and the cash reserve ratio.

The two-day meeting coincides with the second-year anniversary of CBN Governor Olayemi Cardoso and his deputy governors. Analysts say the gathering is critical as the apex bank weighs fresh policy options to tame inflation and ease lending pressures.

Nigeria’s inflation rate dipped for the fifth straight month in August, settling at 21.12 per cent, while the Monetary Policy Rate (MPR) remains at a record-high 27.5 per cent. Despite the slowdown, prices of goods and services continue to squeeze households, with experts warning the country is facing disinflation, not deflation.

Data analyst Babajide Ogunsawo told Channels Television on Sunday that Nigerians still grapple with stubbornly high costs. His view aligns with CPPE’s warning that prevailing monetary policies are stifling production and worsening credit conditions.

“The Monetary Policy Rate at 27.5 per cent and the Cash Reserve Ratio at 50 per cent have considerably pushed up the cost of funds,” CPPE Chief Executive Officer Muda Yusuf said in a statement. “Elevated lending rates have suppressed private sector borrowing, particularly in manufacturing, agriculture, SMEs, real estate, and other sectors.”

Financial sector stakeholders and citizens alike now await the MPC’s decision, which could determine whether the CBN maintains its hawkish stance or yields to pressure for a rate cut.