The Central Bank of Nigeria (CBN) has kept the country’s benchmark interest rate steady at 27.50% following a decline in inflation.
This decision was made by the Monetary Policy Committee (MPC) during its 299th meeting in Abuja.
CBN Governor Olayemi Cardoso, speaking at a press briefing on Thursday, explained that the decision to maintain the rate was influenced by the recent decrease in inflation, which fell to 24.48% in January after a rebasing of the Consumer Price Index.
“The members of the MPC unanimously agreed to retain the interest rate at 27.50 percent,” Cardoso stated.
Alongside the interest rate, the CBN also maintained the Cash Reserve Ratio (CRR) at 50 basis points, the liquidity ratio (LR) at 30%, and the asymmetric corridor at +500/-100 basis points around the Monetary Policy Rate (MPR).
This marks the first pause in interest rate hikes since Cardoso assumed office in September 2023. Economists and financial experts had previously called for a pause, with the Centre for the Promotion of Private Enterprise among those advocating for a halt in rate increases.
Earlier in the week, the National Bureau of Statistics (NBS) reported that Nigeria’s headline inflation and food inflation had dropped to 24.48% and 26.08% in January, down from 34.80% and 39.93% in December 2024.
