{"id":7884,"date":"2025-05-21T19:07:26","date_gmt":"2025-05-21T19:07:26","guid":{"rendered":"https:\/\/shakamomodu.com\/?p=7884"},"modified":"2025-05-21T19:16:22","modified_gmt":"2025-05-21T19:16:22","slug":"cbn-holds-interest-rate-steady-at-27-5-cites-inflation-drop-and-macroeconomic-stability","status":"publish","type":"post","link":"https:\/\/shakamomodu.com\/index.php\/2025\/05\/21\/cbn-holds-interest-rate-steady-at-27-5-cites-inflation-drop-and-macroeconomic-stability\/","title":{"rendered":"CBN Holds Interest Rate Steady at 27.5%, Cites Inflation Drop and Macroeconomic Stability"},"content":{"rendered":"<p class=\"\" data-start=\"631\" data-end=\"858\"><strong data-start=\"631\" data-end=\"664\">Abuja, Nigeria \u2013 May 21, 2025<\/strong> | The Central Bank of Nigeria (CBN) has maintained the <strong data-start=\"720\" data-end=\"760\">Monetary Policy Rate (MPR) at 27.50%<\/strong>, signaling a wait-and-see approach amid signs of macroeconomic stability and declining inflation.<\/p>\n<p class=\"\" data-start=\"860\" data-end=\"982\">After its <strong data-start=\"870\" data-end=\"919\">300th Monetary Policy Committee (MPC) meeting<\/strong> on Tuesday, the apex bank also retained key policy parameters:<\/p>\n<ul data-start=\"983\" data-end=\"1146\">\n<li class=\"\" data-start=\"983\" data-end=\"1034\">\n<p class=\"\" data-start=\"985\" data-end=\"1034\"><strong data-start=\"985\" data-end=\"1008\">Asymmetric corridor<\/strong> at +500\/-100 basis points<\/p>\n<\/li>\n<li class=\"\" data-start=\"1035\" data-end=\"1117\">\n<p class=\"\" data-start=\"1037\" data-end=\"1117\"><strong data-start=\"1037\" data-end=\"1059\">Cash Reserve Ratio<\/strong> at 50% for Deposit Money Banks and 16% for Merchant Banks<\/p>\n<\/li>\n<li class=\"\" data-start=\"1118\" data-end=\"1146\">\n<p class=\"\" data-start=\"1120\" data-end=\"1146\"><strong data-start=\"1120\" data-end=\"1139\">Liquidity Ratio<\/strong> at 30%<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"1148\" data-end=\"1387\">Addressing the media, <strong data-start=\"1170\" data-end=\"1202\">CBN Governor Olayemi Cardoso<\/strong> said the decision to hold was <strong data-start=\"1233\" data-end=\"1246\">unanimous<\/strong>, citing <strong data-start=\"1255\" data-end=\"1299\">improvements in macroeconomic indicators<\/strong>, particularly the easing of inflation and stabilization of the foreign exchange market.<\/p>\n<blockquote data-start=\"1389\" data-end=\"1566\">\n<p class=\"\" data-start=\"1391\" data-end=\"1566\">\u201cThe overall trajectory is in the right direction. Not one aspect of managing the economy is a silver bullet\u2014it is a combination of consistent policy efforts,\u201d Cardoso stated.<\/p>\n<\/blockquote>\n<hr class=\"\" data-start=\"1568\" data-end=\"1571\" \/>\n<h3 class=\"\" data-start=\"1573\" data-end=\"1608\"><strong data-start=\"1577\" data-end=\"1608\">Inflation Declines in April<\/strong><\/h3>\n<p class=\"\" data-start=\"1610\" data-end=\"1862\">According to figures from the <strong data-start=\"1640\" data-end=\"1679\">National Bureau of Statistics (NBS)<\/strong>, Nigeria\u2019s headline inflation <strong data-start=\"1710\" data-end=\"1743\">eased to 23.71% in April 2025<\/strong>, down from <strong data-start=\"1755\" data-end=\"1774\">24.23% in March<\/strong>. On a month-on-month basis, inflation declined to <strong data-start=\"1825\" data-end=\"1834\">1.86%<\/strong>, compared to 3.9% in March.<\/p>\n<ul data-start=\"1864\" data-end=\"1988\">\n<li class=\"\" data-start=\"1864\" data-end=\"1934\">\n<p class=\"\" data-start=\"1866\" data-end=\"1934\"><strong data-start=\"1866\" data-end=\"1884\">Food inflation<\/strong> dropped to 21.26% in April from 21.79% in March<\/p>\n<\/li>\n<li class=\"\" data-start=\"1935\" data-end=\"1988\">\n<p class=\"\" data-start=\"1937\" data-end=\"1988\"><strong data-start=\"1937\" data-end=\"1955\">Core inflation<\/strong> fell to 23.39%, down from 24.43%<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"1990\" data-end=\"2123\">Cardoso attributed the improvements to <strong data-start=\"2029\" data-end=\"2057\">government interventions<\/strong> to boost food supply and enhance security in farming communities.<\/p>\n<hr class=\"\" data-start=\"2125\" data-end=\"2128\" \/>\n<h3 class=\"\" data-start=\"2130\" data-end=\"2191\"><strong data-start=\"2134\" data-end=\"2191\">Foreign Exchange Market and External Reserves Improve<\/strong><\/h3>\n<p class=\"\" data-start=\"2193\" data-end=\"2359\">Cardoso highlighted the narrowing gap between the <strong data-start=\"2243\" data-end=\"2286\">Nigerian Foreign Exchange Market (NFEM)<\/strong> and <strong data-start=\"2291\" data-end=\"2317\">Bureau De Change (BDC)<\/strong> rates, noting a decline in FX volatility.<\/p>\n<p class=\"\" data-start=\"2361\" data-end=\"2642\">He disclosed that <strong data-start=\"2379\" data-end=\"2457\">gross external reserves rose by 2.85% to $38.90 billion as of May 16, 2025<\/strong>, representing an <strong data-start=\"2475\" data-end=\"2505\">import cover of 7.6 months<\/strong>. The <strong data-start=\"2511\" data-end=\"2540\">Balance of Payments (BOP)<\/strong> also recorded a surplus of <strong data-start=\"2568\" data-end=\"2596\">$1.10 billion in Q4 2024<\/strong>, despite a moderation in the current account.<\/p>\n<blockquote data-start=\"2644\" data-end=\"2771\">\n<p class=\"\" data-start=\"2646\" data-end=\"2771\">\u201cVolatility in the FX market has declined from over 4% to below 0.5%, which reflects growing confidence,\u201d said the CBN chief.<\/p>\n<\/blockquote>\n<hr class=\"\" data-start=\"2773\" data-end=\"2776\" \/>\n<h3 class=\"\" data-start=\"2778\" data-end=\"2837\"><strong data-start=\"2782\" data-end=\"2837\">Banking System Stable Amid Recapitalization Efforts<\/strong><\/h3>\n<p class=\"\" data-start=\"2839\" data-end=\"3089\">The MPC reaffirmed the stability of the Nigerian banking sector, citing <strong data-start=\"2911\" data-end=\"2951\">strengthening performance indicators<\/strong> and <strong data-start=\"2956\" data-end=\"3008\">progress in ongoing recapitalization initiatives<\/strong>. The committee urged continued regulatory vigilance to maintain industry health.<\/p>\n<hr class=\"\" data-start=\"3091\" data-end=\"3094\" \/>\n<h3 class=\"\" data-start=\"3096\" data-end=\"3153\"><strong data-start=\"3100\" data-end=\"3153\">Policy Support for Investment and Economic Growth<\/strong><\/h3>\n<p class=\"\" data-start=\"3155\" data-end=\"3317\">Addressing concerns over perceived delays in tangible benefits from macroeconomic reforms, Cardoso emphasized that <strong data-start=\"3270\" data-end=\"3316\">investor confidence is gradually returning<\/strong>.<\/p>\n<blockquote data-start=\"3319\" data-end=\"3484\">\n<p class=\"\" data-start=\"3321\" data-end=\"3484\">\u201cInvestors don\u2019t go where there\u2019s instability. Now that the Nigerian economy is stable, investor interest is increasing\u2014and with investment comes growth,\u201d he said.<\/p>\n<\/blockquote>\n<p class=\"\" data-start=\"3486\" data-end=\"3704\">He also highlighted Nigeria\u2019s relative success in managing currency depreciation amid global shocks, stating, \u201cOur devaluation has been modest compared to many economies. Early reform measures helped us build buffers.\u201d<\/p>\n<hr class=\"\" data-start=\"3706\" data-end=\"3709\" \/>\n<h3 class=\"\" data-start=\"3711\" data-end=\"3755\"><strong data-start=\"3715\" data-end=\"3755\">Global Outlook and Domestic Strategy<\/strong><\/h3>\n<p class=\"\" data-start=\"3757\" data-end=\"3964\">Cardoso noted that the <strong data-start=\"3780\" data-end=\"3817\">International Monetary Fund (IMF)<\/strong> had downgraded global growth projections to <strong data-start=\"3862\" data-end=\"3879\">2.8% for 2025<\/strong> and <strong data-start=\"3884\" data-end=\"3901\">3.0% for 2026<\/strong>, down from 3.3% in 2024, due to persistent global uncertainty.<\/p>\n<p class=\"\" data-start=\"3966\" data-end=\"4213\">He acknowledged that inflationary pressures remain, fueled by <strong data-start=\"4028\" data-end=\"4049\">electricity costs<\/strong>, <strong data-start=\"4051\" data-end=\"4078\">foreign exchange demand<\/strong>, and <strong data-start=\"4084\" data-end=\"4116\">legacy structural challenges<\/strong>, but emphasized that both fiscal and monetary authorities are coordinating to sustain stability.<\/p>\n<blockquote data-start=\"4215\" data-end=\"4337\">\n<p class=\"\" data-start=\"4217\" data-end=\"4337\">\u201cThe MPC reaffirmed its commitment to anchor inflation expectations and ease exchange rate pressure,\u201d Cardoso concluded.<\/p>\n<\/blockquote>\n<hr class=\"\" data-start=\"4339\" data-end=\"4342\" \/>\n<h3 class=\"\" data-start=\"4344\" data-end=\"4367\"><strong data-start=\"4348\" data-end=\"4365\">KEY TAKEAWAYS<\/strong><\/h3>\n<ul data-start=\"4368\" data-end=\"4677\">\n<li class=\"\" data-start=\"4368\" data-end=\"4403\">\n<p class=\"\" data-start=\"4370\" data-end=\"4403\"><strong data-start=\"4370\" data-end=\"4387\">MPR unchanged<\/strong> at <strong data-start=\"4391\" data-end=\"4401\">27.50%<\/strong><\/p>\n<\/li>\n<li class=\"\" data-start=\"4404\" data-end=\"4463\">\n<p class=\"\" data-start=\"4406\" data-end=\"4463\"><strong data-start=\"4406\" data-end=\"4433\">Headline inflation down<\/strong> to <strong data-start=\"4437\" data-end=\"4461\">23.71% in April 2025<\/strong><\/p>\n<\/li>\n<li class=\"\" data-start=\"4464\" data-end=\"4508\">\n<p class=\"\" data-start=\"4466\" data-end=\"4508\"><strong data-start=\"4466\" data-end=\"4484\">FX reserves up<\/strong> to <strong data-start=\"4488\" data-end=\"4506\">$38.90 billion<\/strong><\/p>\n<\/li>\n<li class=\"\" data-start=\"4509\" data-end=\"4562\">\n<p class=\"\" data-start=\"4511\" data-end=\"4562\"><strong data-start=\"4511\" data-end=\"4560\">Inflation, FX stability attributed to reforms<\/strong><\/p>\n<\/li>\n<li class=\"\" data-start=\"4563\" data-end=\"4621\">\n<p class=\"\" data-start=\"4565\" data-end=\"4621\"><strong data-start=\"4565\" data-end=\"4619\">Banking sector remains stable and well-capitalized<\/strong><\/p>\n<\/li>\n<li class=\"\" data-start=\"4622\" data-end=\"4677\">\n<p class=\"\" data-start=\"4624\" data-end=\"4677\"><strong data-start=\"4624\" data-end=\"4677\">Naira depreciation moderate despite global shocks<\/strong><\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Abuja, Nigeria \u2013 May 21, 2025 | The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 27.50%, signaling a wait-and-see approach amid signs of macroeconomic stability and declining inflation. After its 300th Monetary Policy Committee (MPC) meeting on Tuesday, the apex bank also retained key policy parameters: Asymmetric corridor at [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":5017,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[37,35],"tags":[],"class_list":["post-7884","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/7884"}],"collection":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/comments?post=7884"}],"version-history":[{"count":1,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/7884\/revisions"}],"predecessor-version":[{"id":7888,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/7884\/revisions\/7888"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/media\/5017"}],"wp:attachment":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/media?parent=7884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/categories?post=7884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/tags?post=7884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}