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The Central Bank of Nigeria (CBN) has announced the decision to retain the Monetary Policy Rate (MPR) at 27.5% for the second time in 2025, following its Monetary Policy Committee (MPC) meeting held on May 20, 2025. The decision reflects the Bank’s continued efforts to combat persistent inflationary pressures and maintain macroeconomic stability.
The Committee cited elevated inflation rates, foreign exchange volatility, and global economic uncertainties as key factors influencing its decision to hold the benchmark rate steady. By maintaining the MPR at 27.5%, the CBN aims to reinforce its tight monetary stance while allowing for ongoing evaluation of the impact of previous policy adjustments.
“The decision to retain the MPR at 27.5% is a measured response to current economic realities,” said CBN Governor, Dr. Olayemi Cardoso. “We are committed to reducing inflation to single digits in the medium term, stabilizing the naira, and fostering conditions that support sustainable growth.”
Nigeria’s headline inflation rose to 31.8% year-on-year in April 2025, driven largely by food and energy prices. The MPC emphasized the need for coordinated fiscal and monetary policies, as well as structural reforms, to address the underlying causes of inflation and boost investor confidence.