Nigeria’s central bank has decided to keep its benchmark interest rate unchanged at 27.5%, Governor Olayemi Cardoso announced on Tuesday, following a Monetary Policy Committee (MPC) meeting in the capital. This brings Nigeria’s benchmark interest rate lower than that of Ghana, following the decision by the Ghanaian Central Bank to push its rate up by 100 basis points to 28% at its last meeting in March.
The Nigerian decision, which aligns with the expectations of most economists surveyed by Reuters, marks the second straight time the Central Bank of Nigeria (CBN) has held the rate steady after six consecutive hikes last year.
“The committee was unanimous in its decision to hold the policy rate to enable a better understanding of near-term developments,” Cardoso said, emphasizing the need to monitor economic trends more closely before making further adjustments.
The hold suggests a cautious approach by the CBN as it seeks to balance inflation control with efforts to support economic recovery in Africa’s largest economy.
Nigeria’s interest rate currently stands at a record high of 27.5%, aimed at taming persistent inflationary pressures and stabilizing the naira amid fiscal and external challenges. The MPC’s decision to pause for a second meeting signals a wait-and-see approach in the face of global uncertainties and domestic economic shifts.
The next policy meeting will be closely watched for indications of the central bank’s evolving strategy amid inflation trends and currency market developments.
Meanwhile Fitch Solutions is predicting that Ghana’s policy rate will go down by 200 basis points to 26.00% by the end of 2025. It says this will be followed by a further 300 basis points to 23% in 2026. Fitch has however not always gotten its predictions right.
