CBN retained MPC at 27% benchmark rate

The Central Bank of Nigeria (CBN) on Tuesday kept its benchmark Monetary Policy Rate (MPR) unchanged at 27 percent, extending its cautious pause on monetary easing amid persistent inflationary pressures and an uncertain economic environment.

Announcing the decision at the conclusion of the 303rd Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Olayemi Cardoso said the Committee voted by majority to maintain all key policy parameters, noting that conditions were not sufficiently supportive for another rate cut.

“The Committee decided by a majority vote to maintain the monetary policy stance,” Cardoso said.

“Headline inflation remains high at double digits and requires sustained efforts towards moderating it further.”

The decision marks the fourth straight hold in 2025, following a single 50-basis-point rate cut in September—the only reduction since the tightening cycle began under the current leadership.

Between 2024 and early 2025, the MPC raised rates six times as the regulatory bank battled surging inflation, currency volatility, and liquidity pressures.

Despite the restraint shown by the MPC, analysts polled by Reuters had expected a 1-percentage-point cut, building on September’s modest easing that ended a four-year stretch without rate reductions.

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Nigeria’s consumer inflation has been on a steady downward path, easing for the seventh consecutive month to 16.05% in October, from 24.48% in January, according to the National Bureau of Statistics.

However, the MPC signalled that the current levels still pose risks to price stability.

Balancing Growth and Stability

Cardoso said that while inflation is decelerating, underlying pressures remain strong, and the Committee preferred to prioritise stability over growth concerns—especially as global financial conditions remain tight.

“Maintaining the current stance will help consolidate the gains made so far in moderating inflation,” he said.