The Central Bank of Nigeria (CBN) has voted to retain the Monetary Policy Rate (MPR) at 27.5%, following its 300th Monetary Policy Committee (MPC) meeting held in Abuja.
This was disclosed by the apex bank’s Governor Olayemi Cardoso during the post-MPC press briefing on Tuesday.
Key Monetary Policy Decisions:
Monetary Policy Rate (MPR): Retained at 27.5%, reflecting the committee’s conservative policy stance.
Asymmetric Corridor: Maintained at +500/-100 basis points around the MPR.
Cash Reserve Ratio (CRR): Held at 50% for Deposit Money Banks and 16% for Merchant Banks.
Liquidity Ratio: Left unchanged at 30%.
All 12 MPC members voted unanimously to maintain current policy rates, the CBN stated.
The decision demonstrates the committee’s cautious approach to monetary management, as it continues to assess prevailing macroeconomic conditions and the effectiveness of recent tightening measures.
The CBN highlighted the recent moderation in Nigeria’s inflation rate, which eased to 23.71% in April 2025 from 24.23% in March, according to the latest data from the National Bureau of Statistics (NBS).
What This Means
The CBN’s decision to hold rates steady signals its focus on maintaining price stability while cautiously supporting economic recovery.
By maintaining current rates, the bank is giving room for existing policies to yield results before implementing further adjustments.
According to the MPC communiqué, the committee emphasized the importance of coordinated efforts between fiscal and monetary authorities to sustain economic growth and manage inflationary pressures.
Market analysts suggest any potential rate cuts will depend on inflation trends and exchange rate stability over the coming months.
If inflation continues to moderate and the foreign exchange market stabilizes, the CBN may consider a more accommodative policy stance in the second half of the year.
