The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the benchmark interest rate at 27.5 per cent, marking the second time in 2025 that the apex bank has paused rate adjustments amid ongoing efforts to stabilise the economy.
The decision was announced by CBN Governor, Olayemi Cardoso, during a press briefing held on Tuesday in Abuja following the conclusion of the Committee’s 300th meeting.
“The Committee was unanimous in its agreement to hold all parameters,” Cardoso stated, signaling a cautious approach by the CBN in navigating inflationary pressures and growth concerns.
This latest decision follows a streak of aggressive monetary tightening in 2024, during which the interest rate was raised six consecutive times in a bid to curb soaring inflation and stabilise the naira. The back-to-back rate holds in 2025 suggest that the apex bank may now be prioritising economic growth and financial system stability, especially as inflation shows signs of moderating.
Analysts have been closely watching the CBN’s moves, with many predicting a hold stance amid mixed signals in the economic landscape. While inflation remains a concern, recent improvements in oil revenues and relative stability in the foreign exchange market may have influenced the Committee's decision to maintain the status quo.
More updates are expected as the CBN releases the full communiqué of the MPC meeting, detailing the rationale behind its policy choices and the outlook for the coming quarters.