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.
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