By Charles Ebi
Monetary Policy Committee ,MPC, of the Central Bank of Nigeria ,CBN, has announced At the end of its two-day meeting on Tuesday the retention of the Monetary Policy Rate ,MPR, at 27.5%, following the conclusion of its 301st Monetary Policy Committee ,MPC, meeting held yesterday, July 22, 2025 for the third time in a row
The Governor of the central bank of Nigeria Olayemi Cardoso, who briefed journalists after the meeting, said members of the team agreed to keep all the rates intact for another period was based on the need to sustain the disinflationary trend in the economy, different from what analysts had projected.
“The decision was premised on the need to sustain disinflation and sufficiently contain price pressure”, Cardoso stated, highlighting the committee’s cautious optimism over recent economic indicators.
According to him, the benchmark interest rate has been left at 27.50%, the asymmetric corridor around the MPR will remain at +500/-100 basis points, the Cash Reserve Ratio ,CRR, for Deposit Money Banks ,DMBs, at 50.00% and that of Merchant Banks at 16.00% and the Liquidity Ratio is unchanged at 30.00%.
He explained that the decision to keep all the rates unchanged was to sustain the current decline in headline inflation and maintain price pressures.
He stated that the monetary authorities will continue to monitor the parameters to help future decisions.
All 12 members of the MPC voted unanimously to maintain the MPR at 27.5%, signaling a unified stance among policymakers amid lingering inflationary pressures and exchange rate volatility.
The MPR, which serves as the benchmark interest rate, has remained a key tool in the apex bank’s efforts to rein in inflation, which, while slowing in recent months, remains above the CBN’s comfort zone.
Key decisions made by the MPC:
Retain MPR at 50%
Maintain Asymmetric corridor around the MPR at +500/-100 basis points
Retain Cash Reserve Ratio ,CRR, for Deposit Money Banks ,DMB, at 50% and Merchant Banks at 16%
Keep the Liquidity ratio unchanged at 30%
Analysts had been divided ahead of the meeting, with some expecting a marginal hike to strengthen the naira and others predicting a hold decision due to concerns over sluggish economic growth.
The CBN’s decision to hold rates suggests a focus on balancing inflation control with economic stability, as businesses and consumers continue to navigate a challenging macroeconomic environment.
Other key decisions from the MPC meeting, including adjustments to the Cash Reserve Ratio ,CRR, or Liquidity Ratio, were not immediately disclosed at the time of the announcement.
Recall that a few days ago, the National Bureau of Statistics ,NBS, revealed that inflation rate in Nigeria eased to 22.22% in June 2025 from the 22.97% recorded in May 2025.
Yesterday, the same agency announced the outcome of the rebased Gross Domestic Product ,GDP, of Nigeria, moving it to N205 trillion from N80 trillion.
It also disclosed that in the first quarter of 2025, the country’s economy grew by 3.13%.
