decided to keep the country’s interest rate at 27.50% in January 2025. This is the same rate set in November 2024, even as inflation has started to decrease.
CBN Governor, Olayemi Cardoso, made this announcement after the 299th Monetary Policy Committee (MPC) meeting in Abuja.
He explained that the committee chose to maintain the rate due to a recent drop in inflation. The inflation rate fell to 24.48% in January after the Consumer Price Index was updated.
The committee also kept other key financial policies unchanged:
- Cash Reserve Ratio (CRR): 50 basis points
- Liquidity Ratio (LR): 30%
- Asymmetric Corridor: +500/-100 basis points around the Monetary Policy Rate (MPR)
This decision marks the first time interest rates have been paused since Cardoso became CBN governor in September 2023.
In recent months, economists and financial experts have urged the government to stop increasing interest rates. The Centre for the Promotion of Private Enterprise has been one of the major voices calling for a pause.
Earlier this week, the National Bureau of Statistics reported that Nigeria’s overall inflation rate dropped from 34.80% in December to 24.48% in January. Food inflation also decreased from 39.93% to 26.08%.
By keeping the interest rate stable, the CBN aims to support economic growth while keeping inflation under control.
