CBN Retains Interest Rate at 27.50% for Second Time in 2025
Abuja – May 20, 2025
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the benchmark interest rate at 27.50 percent, marking the second consecutive time the apex bank has held rates steady this year.
CBN Governor Olayemi Cardoso made the announcement during a post-meeting press briefing in Abuja on Tuesday, following the Committee’s 300th session.
The decision to maintain the Monetary Policy Rate (MPR) comes after a series of aggressive hikes in 2024, aimed at taming inflation and stabilising the naira. The six consecutive increases last year had pushed the rate to 27.50% by December 2024.
Analysts view the decision as a sign of cautious optimism amid early signs of economic stability. Cardoso noted that the hold was necessary to allow previous policy actions to fully permeate the economy and further evaluate their effects on inflation, exchange rate dynamics, and credit flow.
“The Committee agreed that holding the rate will consolidate the gains already being recorded while keeping a close watch on domestic and global economic developments,” Cardoso said.
Nigeria’s headline inflation rate moderated to 23.71% in April 2025, according to the National Bureau of Statistics — down from 24.23% in March, suggesting a possible easing of inflationary pressures.
However, the CBN chief cautioned that risks remain, including global oil market volatility and domestic fiscal imbalances, which may necessitate future policy adjustments.
