AKINWALE ABOLUWADE
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reduced the country’s benchmark interest rate to 27.00 per cent, marking the first adjustment of 2025.
CBN Governor, Olayemi Cardoso, announced the decision on Tuesday during a press briefing at the end of the Committee’s 302nd meeting in Abuja.
According to him, the MPC voted to lower the Monetary Policy Rate (MPR) by 50 basis points, moving it from 27.5 per cent to 27 per cent.
Cardoso explained that the decision was informed by consistent signs of disinflation recorded in recent months. He added that the cut was aimed at stimulating lending, easing the cost of borrowing, and supporting growth while maintaining vigilance against inflationary pressures.
The governor recalled that the apex bank had maintained three consecutive pauses in rate adjustments before Tuesday’s decision. He also noted that in 2024, the MPC had implemented six successive hikes to contain inflation and stabilize the naira.
Analysts say the latest cut signals cautious optimism by the CBN that recent monetary and fiscal measures are yielding results. However, the Committee stressed that it will continue to closely monitor economic indicators before making further adjustments.
