By Gwurld4026 
Central Bank Holds Interest Rate Steady at 27.5%
The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 27.5%, marking the first time in nearly three years that the rate has not been increased. This decision was reached unanimously during the 299th meeting of the Monetary Policy Committee (MPC) held on February 20, 2025.
Key Highlights:
- Inflation Trends: Recent macroeconomic developments, including stability in the foreign exchange market and a gradual decrease in Premium Motor Spirit (PMS) prices, have contributed to a positive outlook on inflation. The National Bureau of Statistics reported a year-on-year inflation rate of 24.48% in January 2025, following a rebasing exercise.
- Policy Parameters: In addition to retaining the MPR, the MPC kept other monetary policy parameters unchanged:
- Cash Reserve Ratio (CRR): 50% for Deposit Money Banks and 16% for Merchant Banks.
- Liquidity Ratio (LR): 30%.
- Asymmetric Corridor: +500/-100 basis points around the MPR.
CBN Governor Olayemi Cardoso expressed satisfaction with the recent macroeconomic trends, suggesting they would positively influence price stability in the near to medium term. He emphasized the central bank’s commitment to achieving single-digit inflation rates and highlighted the importance of maintaining stability in the financial markets.
This decision comes after a series of rate hikes totaling 875 basis points in 2024, aimed at combating rising inflation. The MPC’s current stance reflects confidence in the ongoing economic reforms and their potential to sustain the observed improvements in key economic indicators.
For more insights into the CBN’s decision, you can watch the following video: