Victor EzejaThe Central Bank of Nigeria (CBN) has fixed a date for the 301st Monetary Policy Committee (MPC) meeting, where a decision for the benchmark interest rate will be made.
In the meeting scheduled to hold on Monday, 21 July and Tuesday, 22 July 2025, important economic decisions, including the Monetary Policy Rate (MPR), also known as the benchmark interest rate, will be made.
Join our WhatsApp ChannelThe meeting was confirmed in a notice released by the CBN on Saturday. According to the notice from the apex bank, the meeting will be held at the MPC Meeting room, at CBN headquarters, Abuja.
MPR, which is the benchmark interest rate set by a country’s central bank, serves as the baseline interest rate for the economy, influencing all other interest rates. It helps control inflation by adjusting the money supply in the economy. When inflation rises, the central bank may increase the MPR to reduce borrowing and spending. MPR affects interest rates for loans and deposits, impacting borrowing costs for individuals and businesses.
In its quest to tackle inflationary pressure in Nigeria, the CBN has increased the MPR by 875 basis points from 18.75 per cent in February 2024 to 27.5 per cent.
However, following the easing of inflation, the MPC has retained the interest rate at 27.5 per cent for two consecutive times.
READ ALSO: CBN retains interest rate at 27.5%
During the last MPC meeting in May, the committee members observed the relative stability in the foreign exchange market, the closing gap between the official and parallel exchange rates, declining prices of Premium Motor Spirit (PMS) and other signs of improving macroeconomic fundamentals, and emphasised the importance of sustaining ongoing monetary reforms to strengthen market confidence.
With the next MPC meeting set to hold in the next two days, the focus is on whether the MPC would retain the rate or reduce it.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
