Central Bank of Nigeria (CBN) retained its benchmark lending rate unchanged at 27.5 percent
This was announced on Thursday by the Governor of the Nigeria’s Central Bank, Olayemi Cardoso.
Following a series of aggressive rate hikes last year aimed at taming inflation. The Monetary Policy Committee (MPC) had previously raised rates by a total of 875 basis points in 2024, as inflationary pressures mounted.
However, earlier this week, the National Bureau of Statistics (NBS) reported a rebased inflation rate of 24.48 percent for January, significantly lower than previous estimates.
Inflation Rebase and Naira Stability Shape Policy Outlook
The rebasing of the Consumer Price Index (CPI) has led to a revised inflation outlook, prompting the central bank to take a cautious approach before making further policy adjustments.
Additionally, the naira has shown relative stability since December, a development that may have reassured policymakers and reduced the immediate need for further tightening.
The CBN’s decision aligns with market expectations as investors and analysts continue to assess the impact of the new inflation methodology and the trajectory of the naira.
As Nigeria navigates monetary policy challenges, attention will now turn to the central bank’s next steps in balancing economic growth, inflation control, and currency stability.
