The Central Bank of Nigeria (CBN) is expected to keep the Monetary Policy Rate (MPR) unchanged for most of 2025, as it continues to focus on managing inflationary pressures and ensuring economic stability. Analysts predict that the CBN will adopt a cautious approach to interest rates, given ongoing concerns about inflation, exchange rate stability, and the need to stimulate sustainable growth.
The MPR, which serves as the benchmark interest rate for the country, has seen a series of hikes in recent years, as the CBN works to combat inflation and stabilize the naira. However, despite these efforts, inflation remains persistently high, driven by a variety of factors, including supply chain disruptions, rising energy costs, and fluctuating global food prices.
Economists believe that the CBN will maintain the MPR at its current level for most of 2025 to allow for a more stable monetary policy environment. “The CBN has made significant strides in controlling inflation, but given the complex challenges facing the economy, it is unlikely that we will see significant changes to the MPR in the short term,” said financial analyst Chijioke Okafor.

One key consideration for the CBN will be the need to balance inflation control with economic growth. While high interest rates can help curb inflation by reducing consumer spending and borrowing, they can also slow down economic activity. In light of this, the CBN is expected to remain cautious in its approach to rate changes, ensuring that it does not stifle growth as the economy recovers from the impacts of the COVID-19 pandemic and other global challenges.
Furthermore, the CBN will likely continue to monitor global economic conditions and their impact on Nigeria’s inflation and exchange rates. The global economic outlook, particularly in relation to oil prices and trade dynamics, will play a crucial role in shaping the CBN’s monetary policy decisions throughout 2025.
For businesses and consumers, the expectation of a stable MPR means that borrowing costs are likely to remain relatively high for the foreseeable future. However, the CBN’s focus on price stability may provide some relief in terms of inflationary pressures, allowing for a more predictable economic environment.
Overall, while the CBN is expected to keep the MPR steady throughout 2025, it will continue to assess economic conditions and adjust its policies as needed to support long-term growth and price stability.
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