Rising from the May 2025 Monetary Policy Committee (MPC) on Tuesday the Central Bank of Nigeria (CBN) retained key lending rates inducing the benchmark interest rate.
All MPC members voted unanimously to retain the Monetary Policy Rate (MPR) at 27.50%; retain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.
The Committee also retained the Liquidity Ratio (LR) at 30% and the Asymmetric Corridor at +500/-100 basis points around the MPR.
The CBN Governor, Dr. Olayemi Cardoso while briefing the media after the meeting cited recent economic and the need for consolidation as core to keeping the rates constant.
He said the CBN noted significant improvements in some key macroeconomic indicators, including exchange rate stability and a gradual slowdown in fuel price increases, thus the decision to hold key rates steady was the best decision at this time.
“Members also noted with satisfaction, progressive moderation in food inflation, and therefore commended the government for implementing measures to increase food supply as well as stepping up the fight against insecurity, especially in farming communities,” Cardoso said.
Analysts had projected the CBN would hold the interest rates constant to deepen the recent gains in the economy.
