CBN MPC holds interest rate at 27.5% amid signs of inflation ease, economic stabilisation

The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 27.5% for the second consecutive time in 2025, signaling a cautious but optimistic stance toward Nigeria’s economic trajectory.

Governor of the CBN, Olayemi Cardoso, made the announcement on Tuesday during a press briefing following the 300th meeting of the Monetary Policy Committee (MPC) in Abuja.

“The Committee was unanimous in its agreement to hold all parameters,” Cardoso said, emphasising the decision as a strategic pause after six consecutive interest rate hikes in 2024 aimed at curbing surging inflation.

The decision to hold comes against the backdrop of improving economic indicators. Data from the National Bureau of Statistics (NBS) shows Nigeria’s annual inflation rate declined to 23.71% in April 2025, down from 24.23% in March. Food inflation, a major concern for many households, also eased to 21.26% from 21.79%, aided by lower prices of staples such as maize, wheat, and yam.

Governor Cardoso commended the federal government for efforts to boost food supply and improve security in farming regions. He noted that such initiatives are beginning to bear fruit.

READ ALSO: Again, CBN’s MPC raises interest rate, now 27.5%

“The MPC encourages security agencies to sustain the momentum while the government provides necessary protection to farmers to further boost local food production,” he said.

Despite the positive trend, the committee acknowledged lingering inflationary pressures tied to high electricity tariffs, persistent foreign exchange demand, and structural constraints that continue to burden consumers and businesses alike.

Cardoso highlighted several recent policy moves by the federal government aimed at reducing Nigeria’s reliance on imports and easing the burden on foreign exchange reserves. He urged continued commitment to these reforms.

“Given the relative stability in the foreign exchange market, members urge the bank to sustain the implementation of ongoing reforms to further boost the economy,” he stated.

Speaking to the broader economic outlook, the CBN Governor said the economy was showing signs of greater resilience and stability, and encouraged private sector players to take advantage of the improving climate.

“The inflation numbers speak for themselves. The overall trajectory is in the right direction,” Cardoso noted. “There is no one-size-fits-all solution to our economic challenges. What will solve them is a multiplicity of consistent, strategic efforts.”

He also expressed confidence in the naira’s improving competitiveness, describing it as a positive sign for Nigeria’s export potential.

“This should encourage more exports if we continue on this trajectory. I am very optimistic,” Cardoso concluded.

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