MPC holds benchmark interest rate as inflation slows

The Monetary Policy Committee (MPC) on Tuesday kept the Monetary Policy Rate (MPR), also known as the benchmark interest rate, steady, signaling a cautious stance as inflation showed signs of moderation in April.

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), announced the decision after the second two-day MPC meeting of the year, held in Abuja. According to Cardoso, the Committee chose to pause and assess the impact of previous policy adjustments on inflation, economic growth, and exchange rate stability before taking further action.

At its last meeting in February 2025, the MPC also maintained the interest rate at 27.5 percent, following the rebasing of the Consumer Price Index (CPI), which signaled the reintroduction of a real rate environment.

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“The Monetary Policy Committee noted with satisfaction recent macroeconomic developments which are expected to positively impact price dynamics in the near to medium term,” Cardoso said. He highlighted the relative stability in the foreign exchange market, leading to an appreciation of the naira and the gradual decline in the price of Premium Motor Spirit (PMS) as key contributing factors.

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ByHope Moses-Ashike

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Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.