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Central bank maintains benchmark rate for third time in 2025
Abuja, Nigeria – The Central Bank of Nigeria held its Monetary Policy Rate at 27.5% following the 301st Monetary Policy Committee meeting on Tuesday. CBN Governor Olayemi Cardoso announced the decision to maintain the benchmark rate for the third consecutive time this year.
MPC Decision Details
The Monetary Policy Committee kept all key rates unchanged during the meeting in Abuja. The committee maintained the cash reserve ratio at 50% for Deposit Money Banks and 16% for Merchant banks.
The liquidity ratio remains at 30%.
“The committee voted to retain the Monetary Policy Rates at 27.5%,” Cardoso said.
Inflation Control Strategy
Cardoso said the decision aims to sustain efforts in curbing inflation and stabilizing prices. The committee acknowledged federal government security improvements and their impact on food security.
Bank Recapitalization Update
Eight banks have met the CBN’s new recapitalization requirements. The central bank set a 24-month timeline for banks to meet updated capital requirements:
- N500 billion for banks with international licenses
- N200 billion for national banks
- N50 billion for regional banks
Economic Impact
The rate decision affects borrowing costs across Nigeria’s economy. The next monetary policy meeting is scheduled for later this year.
By Abdullah Korede
