Victor EzejaThe Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has again voted to retain the Monetary Policy Rate, the benchmark interest rate, at 27.50 per cent.
The decision was taken during the 301st MPC meeting held from Monday, 21 to Tuesday, 22 July 2025 at the CBN Headquarters, Abuja.
Join our WhatsApp ChannelAccording to a communique released Tuesday, signed by the CBN Governor, Dr Olayemi Cardoso, the meeting was held to review recent economic and financial developments and the outlook.
Cardoso said the committee decided to maintain the current monetary policy stance and hold all policy parameters constant as follows:
“Retain the Monetary Policy Rate (MPR) at 27.50 per cent;
“Maintain the asymmetric corridor around the MPR at +500/-100 basis points;
“Retain the Cash Reserve Ratio (CRR) for Deposit Money Banks at 50.00 per cent and for Merchant Banks at 16.00 per cent; and
“Keep the Liquidity Ratio unchanged at 30.00 per cent.”
The Monetary Policy Rate is the benchmark interest rate that guides lending rates in the financial system and serves as a primary tool in managing inflation.
This is the third consecutive time that the CBN has retained the interest rate at 27.50 per cent. In its quest to tackle high inflation in Nigeria, the apex bank had adopted a monetary policy tightening stance, hiking the MPR by a total of 875 basis points from 18.75 per cent as at early 2024 to 27.50 per cent.
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After raising the MPR by 25 basis points to 27.50 per cent from 27.25 per cent in November 2024,the apex bank has maintained the benchmark interest rate at 27.50 per cent following the easing of the inflation rate.
Nigeria’s headline inflation rate has dropped three consecutive times. From 24.23 per cent in March 2025, it has consistently recorded a drop – 23.71 per cent in April, 22.97 per cent in May and 22.22 per cent in June.
Cardoso explained that maintaining the current policy stance will help to continue addressing existing and emerging inflationary pressure on the economy.
“This decision was premised on the need to sustain the momentum of disinflation and sufficiently contain price pressures. Maintaining the current policy stance will continue to address the existing and emerging inflationary pressure,” Cardoso stated.
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He said the MPC would continue to monitor economic conditions, price development and outlook to inform future policy decisions.
While acknowledging the decline in headline inflation in June 2025, the third consecutive month of deceleration, the Committee stated that the moderation in energy prices and stability in the foreign exchange market largely drove this trend.
“Despite these positive developments, Members observed the uptick in month-on-month headline inflation, suggesting the persistence of underlying price pressures,” the CBN governor stated.
The committee noted that continued global uncertainties associated with the tariff wars and geopolitical tensions could further worsen disruption of supply chain and exert pressure on the prices of imported items.
“Given the persistent uncertainty in the policy environment and underlying price pressures, monetary policy will need to maintain its current stance until risks to inflation recede sufficiently. The Committee remains committed to the Bank’s price stability mandate and would take appropriate measures to foster stability and confidence in the economy,” Cardoso further stated.
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.
