The Central Bank of Nigeria (CBN) has announced the retention of the Monetary Policy Rate (MPR) at 27.5%, following the conclusion of its 301st Monetary Policy Committee (MPC) meeting held on Tuesday, July 22, 2025.
CBN Governor, Dr. Olayemi Cardoso, who briefed journalists after the meeting, said the committee’s decision to hold the rate steady was based on the need to sustain the disinflationary trend in the economy.
“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.
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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%
The CBN Governor stated that maintaining the current policy stance ill continue to address existing and emerging inflationary pressure.
He said, ‘’Maintaining the current policy stance will continue to address existing and emerging inflationary pressure. The MPC will continue to undertake rigorous assessment of economic conditions, price developments and outlook to inform future policy decisions.’’
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.
The decision underlines the Bank’s commitment to balancing price stability with gradual economic recovery.
The vote was unanimous, with all 12 MPC members supporting the retention of existing rates, citing the need to monitor the effectiveness of current policies before making further adjustments.
What you should know
A recent CBN survey revealed that most Nigerians are calling for a reduction in interest rates.
According to the report, 62.4% of respondents expressed a preference for a reduction in interest rates, signaling widespread concern over the cost of borrowing and the impact of tight monetary policy on households and businesses.
When asked to choose between keeping interest rates high to curb inflation and lowering them to ease access to credit, 45% of respondents favored a reduction in interest rates, while 40.3% supported an increase to help bring inflation under control.
The remaining respondents were either neutral or uncertain.
The survey also revealed widespread pessimism about the trajectory of the Nigerian economy if inflation continues to rise unchecked.
