The Monetary Policy Committee of the Central Bank of Nigeria has retained the country’s benchmark interest rate at 27.50 per cent following its 299th meeting in Abuja.

The CBN Governor, Olayemi Cardoso, announced the decision during a press briefing on Thursday, stating that all parameters were unanimously held as the committee assessed the economic outlook for 2025.

“The Committee was unanimous in its decision to hold all parameters and thus decided as follows: 1. Retain the MPR at 27.50 per cent. 2. Retain the asymmetric corridor around the MPR at +500/-100 basis points.

“3. Retain the Cash Reserve Ratio of Deposit Money Banks at 50.00 per cent and Merchant Banks at 16 per cent. 4. Retain the Liquidity Ratio at 30.00 per cent,” Cardoso said.

The decision marks a pause in rate hikes after six consecutive increases in 2024, as the apex bank navigates inflationary pressures, exchange rate volatility, and economic growth concerns.

The Committee noted stability in the foreign exchange market, improvements in external reserves, and a gradual moderation in fuel prices as key macroeconomic developments influencing its decision

It acknowledged that inflation remains a concern, particularly as the recent rebasing of the Consumer Price Index by the National Bureau of Statistics revised headline inflation to 24.48 per cent in January 2025, compared to 34.80 per cent in December 2024 under the previous base year.

The MPC expressed confidence that as food security measures improve, inflationary pressures, particularly those driven by food prices, will ease over time.

Cardoso further highlighted the need for continued collaboration between monetary and fiscal authorities to sustain recent macroeconomic gains.

He stated that the CBN’s recent measures in the foreign exchange market, such as the Electronic Foreign Exchange Matching System and the Nigeria Foreign Exchange Code, have helped stabilise the exchange rate.

The committee observed a convergence between the Nigeria Foreign Exchange Market and Bureau de Change rates, improving market transparency and liquidity.

The committee noted a positive trend in oil production, which reached 1.54 million barrels per day in January 2025, as a key factor supporting external reserves, which stood at $39.4bn as of February 14, 2025, translating to an import cover of 9.6 months.

It also noted that Nigeria’s GDP grew by 3.46 per cent in the third quarter of 2024, driven primarily by the non-oil sector, with the services industry playing a dominant role.