CBN Governor casts deciding vote as MPC split keeps benchmark interest rates at 27 %

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, cast the deciding vote to keep the benchmark interest rate unchanged at 27 per cent at the Monetary Policy Committee (MPC) meeting held in November.

The voting pattern highlighted the sharp divisions among policymakers over the next phase of Nigeria’s monetary tightening cycle.Minutes of the MPC meeting held on November 25 showed a split decision, with five members, including the CBN governor, voting to maintain the Monetary Policy Rate (MPR) at 27 per cent, while the remaining five members argued for a rate cut.

As chairman of the Committee, Cardoso exercised his casting vote, tipping the balance in favour of holding rates steady.

Explaining his stance, Cardoso said the decision to hold rates was a deliberate signal aimed at reinforcing macroeconomic stability and recognising early signs that the current policy posture was delivering its intended outcomes.In my view, holding is a clear signal of reinforcing stability and acknowledgement that the current policy stance is having the desired effect,” Cardoso said, according to the minutes.

He noted that improved anchoring of overnight interbank market rates within the standing facilities corridor pointed to stronger monetary policy transmission to the wholesale market, describing the development as a positive and encouraging outcome.

The CBN governor added that more effective policy transmission provided room for further technical adjustments to the monetary policy corridor, particularly in response to evolving liquidity conditions and sustained price action in benchmark government securities.

Cardoso also highlighted the rationale behind the proposed asymmetric adjustment of the policy corridor, explaining that widening the floor while keeping the ceiling tight was intended to absorb persistent excess liquidity in the system without weakening the Central Bank’s grip on short-term interest rates.

The split vote underscores ongoing debate within the MPC over the balance between sustaining disinflation gains and supporting economic activity, as policymakers weigh the timing and pace of any future policy easing.