Nigeria CBN Cuts Interest Rate to 27% in First Reduction of 2025

The Digest:

The Central Bank of Nigeria has lowered its benchmark interest rate for the first time this year, reducing the Monetary Policy Rate by 50 basis points to 27.00 per cent. The decision, announced by CBN Governor Olayemi Cardoso after the 302nd MPC meeting in Abuja, signals a shift in policy following three consecutive pauses and six rate hikes recorded throughout 2024.

Key Points:

• The Monetary Policy Committee reduced the interest rate to 27.00 per cent.
• This represents a 50 basis point cut, the first reduction in 2025.
• CBN Governor Olayemi Cardoso announced the decision in Abuja.
• The cut follows three previous meetings where rates were held steady.
• The bank cited consistent disinflation as the reason for the easing.
• The move reverses the trend of six consecutive hikes in 2024.
• This could signal the beginning of a new monetary easing cycle.

The rate cut marks a cautious turn in Nigeria’s monetary strategy, where easing inflation creates space for supporting economic growth after a prolonged period of tightening

Sources: Punch Newspapers, CBN