The Central Bank of Nigeria (CBN) has announced the retention of the Monetary Policy Rate (MPR) at 27.5% following the conclusion of its 301st Monetary Policy Committee (MPC) meeting held on Tuesday, July 22, 2025.

Addressing journalists after the meeting, CBN Governor Dr. Olayemi Cardoso stated that the committee’s decision was driven by the need to sustain the disinflationary trend and contain price pressures in the economy.

“The decision was premised on the need to sustain disinflation and sufficiently contain price pressure,” Cardoso explained, noting the committee’s cautious optimism about recent economic indicators.

All 12 MPC members voted unanimously to maintain the MPR at 27.5%, signaling a unified stance among policymakers amid persistent inflationary pressures and exchange rate volatility.

The MPR, which serves as the benchmark interest rate, remains a critical tool in the apex bank’s efforts to rein in inflation, which, although slowing in recent months, is still above the CBN’s target range.

Key decisions from the MPC meeting include:

• Retention of MPR at 27.5%
• Maintenance of the asymmetric corridor around the MPR at +500/-100 basis points
• Retention of Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks
• Maintenance of the Liquidity Ratio at 30%

Governor Cardoso emphasised that the current policy stance would continue to address both existing and emerging inflationary pressures.

“The MPC will continue to undertake rigorous assessments of economic conditions, price developments, and outlook to inform future policy decisions,” he said.

Analysts were divided ahead of the meeting, with some expecting a marginal rate hike to strengthen the naira and others predicting a hold decision due to concerns over sluggish economic growth. The decision to maintain rates reflects the CBN’s focus on balancing inflation control with economic stability as businesses and consumers navigate a challenging macroeconomic environment.

Other potential adjustments to the CRR or Liquidity Ratio were not immediately disclosed at the time of the announcement.

Overall, the unanimous vote underlines the Bank’s commitment to monitoring the effectiveness of current policies before making further adjustments, amid growing concerns about the trajectory of the economy if inflation remains unchecked.

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