Highlights

In its first meeting of the year and the first pause since March 2022, the Monetary Policy Committee (MPC) decided to hold rates steady, keeping all policy parameters unchanged. This follows a cumulative 1,600 basis points (16%) increase in the benchmark interest rate since March 2022.

In Summary:

—> Monetary Policy Rate: 27.50%.

—> Asymmetric Corridor: +500/-100 basis points around the MPR.

—> CRR of Deposit Money Banks: 50.00%.

—> CRR of Merchant Banks: 16.00%.

—> Liquidity Ratio: 30.00%.

Outlook

While the MPC acknowledged recent declines in inflation, it remains cautious about the pace of monetary easing. The Monetary Policy Rate (MPR) remains at 27.50%, with the expectation that future rate adjustments will be data driven. Given the expected decline in inflation and expectations of stable FX conditions, the Committee anticipates a gradual reduction in interest rates over the course of the year.

Click here “February 2025 MPC Decision – First Pause Since March 2022 as MPC Signals Stability” to view the full report.

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