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

President Tinubu

Tinubu Nominates New Oil Regulators as Ahmed, Komolafe Resign

President Tinubu has nominated new chief executives for Nigeria’s petroleum regulatory agencies following the resignation of the heads of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), developments that come amid intense controversy

Musk Predicts AI Future Where Salaries, Money Lose Relevance

Elon Musk has warned that money and salaries could become irrelevant in the future as artificial intelligence and robotics advance to the point where human labour is no longer necessary. The world’s richest man said a future dominated by AI could eliminate
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

5G

5G Will Be Accessed By 40% Of Global Population By 2025 – GSMA

The GSM Association has predicted that two in five people

Rivers Sole Administrator Orders LG Heads To Submit Council Reports Amid Alleged Move To Appoint Caretakers

Vice Admiral Ibok-Ete Ibas, Rivers State Sole Administrator, has ordered