Market Trends
CBN Maintains Interest Rate at 27.5% to Tackle Inflation
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 27.5 per cent.
This marks the third time in 2025 that the apex bank has maintained the benchmark interest rate, which serves as a guide for other interest rates across the country.
CBN Governor Olayemi Cardoso made the announcement on Tuesday at the conclusion of the Committee’s 301st meeting in Abuja.
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Cardoso noted that the Committee also decided to retain the asymmetric corridor around the MPR at +500/-100 basis points, along with other key monetary parameters.
According to him, the Cash Reserve Ratio (CRR) remains at 50 per cent for Deposit Money Banks and 16 per cent for Merchant Banks, while the Liquidity Ratio stays at 30 per cent.
He explained that the decision aims to sustain ongoing efforts to curb inflation and ensure price stability, as well as to address emerging monetary pressures.
Cardoso also acknowledged the federal government’s efforts to enhance national security and its positive impact on food security.
In addition, he disclosed that eight banks have so far met the CBN’s recapitalisation requirements, while others are still working to meet the target. However, he did not name the banks that had already complied as of the time of the briefing.
The CBN had earlier set a 24-month deadline — from April 1, 2024, to March 31, 2026 — for recapitalisation. Under the directive, banks with international licenses must maintain a minimum of ₦500 billion in paid-up capital, national banks ₦200 billion, and regional banks ₦50 billion.