The Central Bank of Nigeria (CBN) has announced the retention of the Monetary Policy Rate (MPR) at 27.50%. This decision emerged from the 299th meeting of the Monetary Policy Committee (MPC), held on February 19 and 20, 2025, at the CBN Headquarters in Abuja.
•Key Monetary Policy Decisions:
•Monetary Policy Rate (MPR):Held steady at 27.50%.
•Cash Reserve Ratio (CRR):Maintained at 50% for Deposit Money Banks and 16% for Merchant Banks.
•Liquidity Ratio (LR):unchanged at 30%.
•Asymmetric Corridor: Retained at +500/-100 basis points around the MPR.
CBN Governor Olayemi Cardoso emphasized that the unanimous decision to keep these rates unchanged reflects the Committee’s confidence in the current monetary policy stance. This approach aims to sustain the recent improvements observed in key economic indicators.
Notably, the National Bureau of Statistics reported a decline in the annual inflation rate to 24.48% in January 2025, attributed to a recent rebasing exercise. Additionally, the Nigerian naira has demonstrated relative stability since December 2024, factors that likely influenced the MPC’s decision to maintain the status quo.
The MPC’s commitment to its current policy parameters underscores its strategic focus on fostering economic growth while vigilantly monitoring inflationary trends. By retaining the MPR and other key rates, the CBN aims to provide a stable financial environment conducive to sustainable development.
