The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 27.5 per cent, along with all other policy parameters.
CBN Governor, Olayemi Cardoso, announced this on Tuesday afternoon during the Monetary Policy Committee (MPC) briefing in Abuja. The apex bank’s 301st MPC meeting took place on 21st and 22nd July 2025 to assess recent economic and financial trends and projections.
The Committee also kept the asymmetric corridor at +500/-100 basis points around the MPR, maintained the Cash Reserve Ratio (CRR) at 50 per cent for Deposit Money Banks, and left the Liquidity Ratio unchanged at 30 per cent.
Cardoso stated that the decision to hold the MPR steady aims to sustain the current disinflation trend and ensure further reduction in prices. As of 18th July, Nigeria’s foreign reserves stood at $40.1 billion, enough to cover nine and a half months of imports.
He added that both monetary and fiscal authorities would continue collaborating to drive inflation into single-digit territory.
The CRR for merchant banks remains at 16 per cent, while the Liquidity Ratio holds steady at 30 per cent.
Cardoso emphasised that the policy stance aims to maintain momentum in combating inflation and addressing underlying price pressures. He noted that the MPC acknowledged the fall in headline inflation in June 2025—the third consecutive monthly drop—attributed to lower energy costs and exchange rate stability.
However, members noted a slight increase in month-on-month headline inflation, pointing to persisting price pressures beneath the surface.
Cardoso also warned that ongoing global uncertainties—such as tariff disputes and geopolitical tensions—could worsen supply chain disruptions and push up prices of imported goods.
He concluded that the MPC would continue rigorous assessments of economic conditions and inflation outlook to guide future policy decisions.