By Anastasia John E.
The Central Bank of Nigeria (CBN) has announced its decision to maintain the Monetary Policy Rate (MPR) at 27.5%. This decision was reached at the 299th meeting of the Monetary Policy Committee (MPC) held on February 19th and 20th, 2025, and announced by CBN Governor Yemi Cardoso.
In addition to holding the MPR at 27.5%, the MPC also resolved to:
- Retain the asymmetric corridor around the MPR at +500/-100 basis points.
- Retain the Cash Reserve Ratio (CRR) for Deposit Money Banks at 50.00% and for Merchant Banks at 16%.
- Retain the Liquidity Ratio at 30.00%.
The CBN’s decision reflects a cautious approach, balancing the need to control inflation with supporting economic growth. The MPC cited recent positive developments, including stability in the foreign exchange market and moderating PMS prices, but also acknowledged the risk of persistent inflationary pressures, particularly driven by food prices. The committee noted the recent rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS) and expressed optimism that continued improvements in security in food-producing regions, coupled with other measures to enhance food supply, will help moderate food prices.
The MPC emphasized the importance of continued collaboration between monetary and fiscal authorities and highlighted the benefits of improvements in the external sector, including the convergence of exchange rates and increased oil production. The committee also stressed the resilience of the banking system, while urging continued vigilance and monitoring of the ongoing bank recapitalization exercise.
The CBN acknowledged both domestic and global economic headwinds, including the ongoing conflicts and geopolitical tensions, while noting the IMF’s global growth projections. The MPC reiterated its commitment to closely monitoring these developments and adapting policies as needed. The next MPC meeting is scheduled for May 19th and 20th, 2025.
