Pre-MPC Analysis: Expecting MPC to hold the Monetary Policy Rate (MPR) at 27%

Pre-MPC Analysis: Expecting MPC to hold the Monetary Policy Rate (MPR) at 27%,

While global inflation continues to ease and major central banks have paused after an aggressive rate-cut cycle in 2025, Nigeria’s macroeconomic backdrop shows improving external buffers, declining inflation, and strengthening investor confidence.

However, private sector momentum remains mixed, and excess system liquidity alongside election-related fiscal risks remain key concerns for policymakers.

Given these dynamics, the Monetary Policy Committee (MPC) may hold the Monetary Policy Rate (MPR) at 27%, maintaining a cautious stance to safeguard disinflation and exchange rate stability, while potentially relying on liquidity management tools to support gradual financial easing.

The full report can be downloaded here