CBN maintains interest rate at 27.5% following inflation rebase

Onome Amuge

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted unanimously to maintain the current rates, with the Monetary Policy Rate (MPR) to remain at 27.5 percent.

The MPC’s decision to keep rates steady comes in the wake of the National Bureau of Statistic’s recent Consumer Price Index (CPI) rebasing. The rebased CPI, published by the NBS just two days prior to the MPC’s decision, saw the headline inflation rate drop to 24.48 percent in January 2025 from 34.80 per cent recorded in December 2024.

Yemi Cardoso, the CBN governor, also announced the MPC’s decision to maintain the asymmetric corridor around the MPR at +500/-100 basis points,

The MPCs stance also included retaining the Cash Reserve Ratio of Deposit Money Banks at 50.00 per cent and Merchant Banks at 16 per cent, while retaining the Liquidity Ratio at 30.00 per cent.