The Central Bank of Nigeria (CBN) has chosen to maintain its benchmark interest rate, the Monetary Policy Rate (MPR), at 27.5% following its 300th Monetary Policy Committee (MPC) meeting held in Abuja. The decision reflects the bank’s continued cautious approach to navigating the country’s economic challenges.
CBN Governor Olayemi Cardoso announced the decision during a press briefing after the meeting on Tuesday. All 12 members of the MPC voted unanimously in favour of holding the rates steady.
Key Policy Decisions:
- MPR: Held at 27.5%
- Asymmetric Corridor: Maintained at +500/-100 basis points around the MPR
- Cash Reserve Ratio (CRR): Remains at 50% for Deposit Money Banks and 16% for Merchant Banks
- Liquidity Ratio: Retained at 30%
According to the CBN, the decision aims to sustain recent progress in stabilizing the economy while assessing the impact of earlier policy tightening. The apex bank noted a slight decline in headline inflation, with the rate easing to 23.71% in April 2025, down from 24.23% in March, based on data from the National Bureau of Statistics (NBS).
The CBN also highlighted reduced exchange rate volatility, stating that currency fluctuations have dropped below 0.5%, indicating a more stable forex environment.
Analysts Support Decision
Market experts had widely anticipated the CBN’s move. Olaitan S. Sunday, Managing Director of Rostrum Investment & Securities Ltd, remarked that maintaining the MPR would help sustain investor confidence and continue efforts to stabilize the naira.
“Holding the rate steady supports inflation control and signals policy consistency, which is crucial for the markets,” he said.
David Adonri, Vice Chairman at Highcap Securities, noted that while the decision aligns with current data, underlying structural issues still pose risks for future economic stability.
The CBN’s policy stance comes as Nigeria continues efforts to rein in inflation, manage exchange rate pressures, and rebuild confidence in the monetary system. The next MPC meeting will likely be closely watched for any shifts based on evolving economic indicators.
