On Thursday, February 20, 2025, the Central Bank of Nigeria (CBN) decided to keep its key interest rate, known as the Monetary Policy Rate (MPR), at 27.5%. This rate is important because it affects how much banks charge when they lend money.
Governor Olayemi Cardoso made the announcement after the Monetary Policy Committee (MPC) meeting. He explained that the committee had agreed to leave all key financial policies the same for now.
In his statement, Cardoso said, “The committee decided to keep the MPR at 27.50%, keep the range around the MPR at plus 500 to minus 100 basis points, and maintain the cash reserve ratio at 50% for commercial banks and 16% for merchant banks. We also decided to leave the liquidity ratio at 30%.”
This means the CBN is not making any big changes to how much it costs to borrow money for now.
