The existing interest rates of 27.5% decided by the Central Bank of Nigeria, CBN is set for another cycle.

At the 300th Monetary Policy Meeting in Abuja, the CBN decided that it will end the constant increase of the MPR and stay on its most effective rate yet.

More so, having doubled the MPR from 11.50% to 27.5% in 4 years, Central Bank Governor Olayemi Cardoso said the policy is beginning to yield results.

The CBN has managed high inflationary pressure since the removal of fuel subsidy and devaluation of the naira in 2023. Cardoso said that high electricity prices and foreign exchange play a big role in it.

He further noted that the committee believes that government measures like the increase of local production, to reduce the need for foreign currency, will help lower prices.

He also expressed concerns about falling oil prices and uncertainty in U.S. trade policy. Cardoso said members of the MPC have doubts that Nigeria’s income and budget plans would remain intact.

The economy is showing signs of recovery, and officials believe prices may start to drop in the near future.