Why CBN Retained Benchmark Interest Rate At 27.5%

February 21, 2025
Why CBN Retained Bencmark Interest Rate At 27.5%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the monetary policy rate (MPR), the benchmark interest rate in the country, at 27.50 percent.

This was announced by the CBN Governor, Dr Olayemi Cardoso, at the end of the 299th MPC meeting at CBN headquarters in Abuja on Thursday, 20th February 2025.

Join our WhatsApp Channel

The decision by CBN to retain the MPR came after the National Bureau of Statistics (NBS) reported on Tuesday that, following a rebasing of the Consumer Price Index (CPI), Nigeria’s inflation rate decreased from 34.8 per cent in December 2024 to 24.48 per cent in January 2025.

READ ALSO: CBN’s Recalibration Conundrum: A Critical Analysis Of Nigeria’s Economic Trajectory

This is the first time the MPC had retained the MPR since it started raising it in May 2022. The committee has increased the interest rate 15 times in almost three years.

The apex bank had adopted the monetary policy tightening stance as a way of tackling inflation in the country.

According to Cardoso, the MPC retained the cash reserve ratio (CRR) at 50 percent, and liquidity ratio at 30 percent.

The CBN governor said the committee noted with satisfaction that recent macroeconomic developments such as stability of the foreign exchange are expected to positively impact price dynamics in the near to medium term.

victor ezeja
Correspondent at  |  + posts

Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.

Victor Ezeja

Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.

Anambra 2025: Ozigbo Joins APC After Leaving Labour Party
Previous Story

Anambra 2025: Ozigbo Joins APC After Leaving Labour Party

Luis Rubiales and Spain forward Jenni Hermoso
Next Story

Non-consensual Kiss: Court Finds Rubiales Guilty, Imposes €10,800 Fine

Featured Stories

Latest from Finance & Economy

Sterling Bank Steps Up Environmental Sustainability Efforts

Nigerian banks are increasingly prioritizing environmental sustainability and climate action, with Sterling Bank leading the charge. The bank, in collaboration with Sterling One Foundation, Sunbeth, and government agencies, organized a nationwide Environmental Cleanup and Beach Adoption exercise, covering 17 states and engaging

Dangote Refinery Dismisses Shutdown Claims

Dangote Petroleum Refinery has denied reports that it is shutting down for maintenance, insisting that production is continuing and that supplies of petrol remain stable. In a statement, the company described the reports as “false and misleading”, saying operations at the refinery

Nigeria Signs ASUU Deal That Could End University Strikes

Nigeria’s Federal Government and the Academic Staff Union of Universities (ASUU) have signed a new agreement aimed at improving the quality of tertiary education and preventing repeated industrial actions. The pact, unveiled on Wednesday at the Tertiary Education Trust Fund (TETFund) Conference
Anambra 2025: Ozigbo Joins APC After Leaving Labour Party
Previous Story

Anambra 2025: Ozigbo Joins APC After Leaving Labour Party

Luis Rubiales and Spain forward Jenni Hermoso
Next Story

Non-consensual Kiss: Court Finds Rubiales Guilty, Imposes €10,800 Fine

Don't Miss

North Korea Sends Troops To Russia In Support Of Ukraine War, Growing Global Concerns

North Korea Sends Troops To Support Russia In Ukraine War

North Korea has reportedly begun deploying troops to Russia in

Shelter Afrique & Managing Director Andrew Chimphondah Part Ways

NAIROBI, Kenya, February 21st, 2021 -/African Media Agency(AMA)/- Shelter Afrique the