The Central Bank of Nigeria (CBN) has maintained its benchmark Monetary Policy Rate (MPR) at 27.5% for the third consecutive time in 2025, signaling a continued aggressive stance against inflation. Governor Olayemi Cardoso announced the decision after the 301st Monetary Policy Committee (MPC) meeting in Abuja, keeping the asymmetric corridor at +500/-100 basis points around the MPR. The move comes despite mounting pressure to ease rates, as the CBN prioritizes taming inflation over economic stimulus.
Why This Matters
• Borrowing Costs: Loans remain expensive for businesses and individuals
• Inflation Control: High rates aim to curb rising prices (currently at 31.7%)
• Economic Growth: Tight policy may slow recovery but targets long-term stability
Key Details
✔ MPR Unchanged: Third hold at 27.5% in 2025
✔ Corridor Maintained: Lending rate at +500bps (32.5%), deposit rate at -100bps (26.5%)
✔ Food Security Nod: MPC praised government efforts but warned of persistent risks
What Next?
→ Next MPC Meeting: Likely to reassess rate if inflation shows sustained decline
→ Market Reaction: Naira stability and bond yields under scrutiny
→ Government Pressure: Calls may grow for rate cuts to boost economic activity
