The Central Bank of Nigeria’s Monetary Policy Committee (MPC) has once again opted to keep the country’s benchmark interest rate steady at 27.50 percent, marking the second consecutive pause in rate adjustments this year.
This decision was announced by CBN Governor Olayemi Cardoso during a press briefing on Tuesday following the 300th MPC meeting held in Abuja.
Governor Cardoso stated, “The Committee was unanimous in its agreement to hold all parameters,” underscoring the collective consensus among the twelve MPC members to maintain the current monetary policy stance. This move comes after a series of six consecutive rate hikes in 2024, reflecting the bank’s cautious approach amid ongoing economic evaluations.
The MPC also retained other critical monetary parameters, including the Cash Reserve Ratio for Deposit Money Banks at 50 percent and Merchant Banks at 16 percent, as well as the Liquidity Ratio at 30 percent. The asymmetric corridor around the Monetary Policy Rate (MPR) remains set at +500/-100 basis points.
This decision reflects the Committee’s response to recent macroeconomic developments, such as improved stability in the foreign exchange market, a gradual moderation in fuel prices, and a notable reduction in headline inflation following the rebasing of the Consumer Price Index by the National Bureau of Statistics. Inflation was revised to 24.48 percent in January 2025 from 34.80 percent in December 2024 under the previous base year, signaling some easing of price pressures.
As the apex bank navigates inflationary concerns, exchange rate volatility, and growth prospects, the MPC’s unanimous decision to hold rates steady aims to balance price stability with economic recovery efforts.
