CBN Retains Interest Rate at 27.5% Amidst Inflation Concerns
Abuja, Nigeria – February 21, 2025 – The Central Bank of Nigeria (CBN) has decided to keep its benchmark interest rate steady at 27.5%, marking the first hold in nearly three years. This decision was announced at the 299th Monetary Policy Committee (MPC) meeting in Abuja and comes after a series of rate hikes in the past year aimed at controlling inflation.
CBN Governor Olayemi Cardoso emphasized that the decision reflects a cautious approach to stabilizing the economy while ensuring inflation continues on a downward trend. Recent data from the National Bureau of Statistics (NBS) shows a slight improvement in inflation, with figures dropping to 24.48% year-on-year in January.
“Inflation is trending down, and it’s looking positive. However, we remain cautious, particularly about rising food prices,” Cardoso stated.
The decision aligns with President Bola Tinubu’s economic reforms, which have been aimed at improving fiscal policies and stimulating growth. However, with Nigeria’s economic growth still lagging behind the 6% target, analysts predict further measures may be needed to sustain momentum.
In addition to retaining the Monetary Policy Rate (MPR), the MPC also maintained the Cash Reserve Ratio (CRR) at 50% and the Liquidity Ratio at 30%, signaling a steady approach in managing the country’s economic challenges.
Economic experts suggest that while the rate hold may bring short-term stability, further interventions will be required to tackle inflation comprehensively and boost investor confidence. The CBN is expected to closely monitor inflation trends and adjust its policies accordingly in the coming months.
