Nigeria’s Central Bank Holds Interest Rate Steady at 27.50%

The Central Bank of Nigeria (CBN) has decided to hold all parameters steady, keeping the Monetary Policy Rate (MPR) at 27.50%, following a unanimous decision by the Monetary Policy Committee (MPC).

This decision aims to maintain stability after the rebasing of the consumer price index (CPI).

CBN Governor Olayemi Cardoso announced the decision at a media briefing in Abuja on Thursday after the committee’s 299th meeting saying that the MPC assessed recent macroeconomic developments, including exchange rate stability and a gradual slowdown in fuel price increases.

The committee decided that holding rates steady was the best course of action.

“The committee noted the recent rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS), which adjusted the weighting of items in the consumption basket to reflect current spending patterns,” said Cardoso.

The rebasing of the CPI lowered reported inflation rates from 34.48% in January to 24.48%. However, underlying price pressures remain high.

The CBN has raised rates aggressively since the start of 2024 to rein in inflation and stabilize the naira.

This latest decision suggests the central bank is pausing to evaluate the impact of those hikes rather than committing to further tightening.

With the next MPC meeting scheduled for May 2025, investors will be watching for signals on whether the CBN maintains its hawkish stance or shifts toward easing if inflation shows signs of further moderation.