-All 12 members of the MPC voted in favor of maintaining the MPR at 27.5%,
•Maintained the Cash Reserve Ratio (CRR) for Deposit Money Banks (DMBs) at 50% and for Merchant Banks at 16%.
••Kept the Liquidity Ratio unchanged at 30%.
The Central Bank of Nigeria (CBN) has announced its decision to maintain the Monetary Policy Rate (MPR) at 27.5%. This key decision was made following the 301st Monetary Policy Committee (MPC) meeting, which concluded on Tuesday, July 22, 2025.
Unanimous Vote to Sustain Price Stability
CBN Governor, Dr. Olayemi Cardoso, briefed journalists after the meeting, stating that the committee’s unanimous decision to keep the rate steady was driven by the imperative to sustain the current disinflationary trend in the economy. “The decision was premised on the need to sustain disinflation and sufficiently contain price pressure,” Cardoso explained, highlighting the committee’s cautious optimism regarding recent economic indicators. All 12 members of the MPC voted in favor of maintaining the MPR at 27.5%, signaling a unified approach among policymakers amidst ongoing inflationary pressures and exchange rate volatility.
The MPR, serving as the benchmark interest rate, remains a crucial instrument in the apex bank’s efforts to curb inflation. While inflation has shown signs of slowing in recent months, it still remains above the CBN’s preferred comfort zone.
Key Policy Rates Retained
In addition to holding the MPR, the MPC made the following key decisions:
* Retained the Asymmetric Corridor around the MPR at +500/-100 basis points.
* Maintained the Cash Reserve Ratio (CRR) for Deposit Money Banks (DMBs) at 50% and for Merchant Banks at 16%.
* Kept the Liquidity Ratio unchanged at 30%.
Governor Cardoso emphasized that “Maintaining the current policy stance will continue to address existing and emerging inflationary pressure.” He also noted that “The MPC will continue to undertake rigorous assessment of economic conditions, price developments and outlook to inform future policy decisions.”
Balancing Inflation Control with Economic Stability
Ahead of the meeting, analysts were divided, with some anticipating a marginal rate hike to strengthen the naira, while others predicted a hold due to concerns about sluggish economic growth. The CBN’s decision to hold rates suggests a clear focus on balancing inflation control with broader economic stability, as businesses and consumers navigate a challenging macroeconomic environment. This move underlines the Bank’s commitment to achieving price stability alongside a gradual economic recovery.
