The Central Bank of Nigeria (CBN) has announced the retention of the Monetary Policy Rate (MPR), the benchmark interest rate at 27.5% at the end of its two-day 301st Monetary Policy Committee (MPC) meeting concluded on Tuesday, July 22, 2025.
The CBN Governor, Mr. Olayemi Cardoso, who briefed journalists on the decisions taken during the committee’s meeting, said the committee’s decision to retain the MPR was based on the need to sustain the disinflationary trend in the economy.
The banker, who expressed the committee’s cautious optimism over recent economic indicators, maintained that the retention of the MPR at 27.5% “was premised on the need to sustain disinflation.”
According to him, all the 12 members of the MPC voted unanimously to maintain the MPR at 27.5%, amid lingering inflationary pressures and exchange rate volatility.
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Other decisions taken by the MPC include maintaining Asymmetric corridor around the MPR at +500/-100 basis points; retention of Cash Reserve Ratio (CRR) for Deposit Money Banks (DMB) at 50% and Merchant Banks at 16%; and the Liquidity ratio, which was left unchanged at 30%
The apex bank’s decision to retain the rates reflected its hawkish policy stance over the past months as it continued to strike a balance between inflation control and economic stability in the face of the lingering whirlwinds in the nation’s economic landscape.
Over the past few days, analysts had been divided in their forecasts about the likely rates the committee will take on the policy rates, especially given the foreign exchange (FX) market’s uncertainties and other macroeconomic trends of the economy over the past months .
