Africa’s Central Banks split on rate cuts as economic pressures mount

As African nations confront persistent inflation, rising unemployment, and shifting fiscal landscapes, central banks have responded with varied monetary policy adjustments in early 2025.

The International Monetary Fund (IMF) April 2025 World Economic Outlook revised growth
projections downward for most African countries—excluding Eswatini—highlighting subdued commodity prices, weaker global demand, and tighter financial conditions.

While some nations like Egypt, South Africa, and Kenya have begun cutting rates, others such as Nigeria, Ghana, and Angola have maintained theirs—signaling a cautious stance amid easing inflation.

Following its 300th MPC meeting, the CBN held Nigeria’s MPR at 27.5%, now the third-highest in Africa.