The Chartered Institute of Bankers of Nigeria (CIBN) has projected that the Central Bank of Nigeria (CBN) will retain the monetary policy rate (MPR) at 26.5 per cent.

The projection comes as the monetary policy committee (MPC) begins its 306th meeting in Abuja on Monday.

Dele Alabi, the CIBN president and chairman of council, made the projection in an interview in Lagos on Saturday.

Mr Alabi said the expectation was based on the CBN’s inflation-targeting monetary policy framework and recent economic developments.

According to him, inflation has neither increased significantly nor declined sufficiently in recent months to justify reducing the benchmark interest rate.

“I expect the MPC to keep the interest rate constant and monitor developments over the next couple of months before considering any adjustment,” he said.

Mr Alabi said retaining the current policy stance would allow the apex bank to assess evolving inflationary pressures and broader economic conditions.

He said the approach would enable the CBN to make informed decisions before introducing further adjustments to its monetary policy stance.

The CBN retained the MPR at 26.5 per cent during its last meeting, continuing efforts to contain inflation and support macroeconomic stability.

Also speaking, Akpan Ekpo, an economist and former member of the CBN’s MPC, advised the committee to retain the policy rate.

Mr Ekpo said global uncertainties, including tensions involving the United States and Iran, could push up crude oil prices and intensify inflationary pressures.

He, however, said such developments were likely to be temporary and should not warrant an increase in interest rates.

The economist urged the MPC to maintain the current policy rate while closely monitoring domestic and global economic developments.

Mr Ekpo also advised the federal government to increase investment in productive sectors to strengthen economic growth and improve overall stability.

He further urged the government to consider policy recommendations from the Manufacturers Association of Nigeria (MAN) to support production and sustain economic expansion.

(NAN)