The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate at 27.50 per cent, marking its second consecutive hold in 2025.

This decision was announced by the CBN Governor, Olayemi Cardoso, during a press briefing on Tuesday in Abuja, following the conclusion of the MPC’s 300th meeting.

This second pause in rates comes after six consecutive hikes recorded in 2024.

Cardoso said, “The Committee was unanimous in its decision to hold policy and thus decided as follows: Retain the MPR at 27.50 per cent,” adding that the pause would enable members to better understand near-term developments in the economy.

With this move, the CBN retained the asymmetric corridor around the MPR at +500/-100 basis points, the Cash Reserve Ratio of Deposit Money Banks at 50.00 per cent, and that of Merchant Banks at 16.00 per cent, while keeping the Liquidity Ratio unchanged at 30.00 per cent.

The MPC based its decision on recent improvements in macroeconomic indicators.

According to the National Bureau of Statistics, headline inflation dropped to 23.71 per cent in April 2025 from 24.23 per cent in March.

On a month-on-month basis, inflation also declined significantly from 3.9 per cent to 1.86 per cent.

Food inflation fell to 21.26 per cent from 21.79 per cent, while core inflation eased to 23.39 per cent in April from 24.43 per cent in March.

The Committee noted these developments with cautious optimism. “The MPC noted the relative improvements in some key macroeconomic indicators which are expected to support the overall moderation in prices in the near to medium term,” Cardoso said.

He also acknowledged the efforts of the government in improving food supply and tackling insecurity in farming communities.