In a move that aligns with recent policy trends, the Central Bank of Nigeria (CBN) has maintained the country’s Monetary Policy Rate (MPR) at 27.50% following its 301st Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday, July 22.
CBN Governor Olayemi Cardoso announced the decision, stating that all members of the committee unanimously agreed to hold the rate steady. The decision comes in light of a continued moderation in inflation, which eased to 22.22% in July.
ALSO READ: NNPC Remits ₦6.96 Trillion to FG, Declares ₦905 Billion Profit in June 2025
Aside from the interest rate, the MPC also kept other key monetary parameters unchanged:
• Cash Reserve Ratio (CRR): 50% for Deposit Money Banks, 16% for Merchant Banks
• Liquidity Ratio (LR): 30%
• Asymmetric corridor: +500/-100 basis points around the MPR
This is the third consecutive time the MPC has maintained the interest rate at 27.50%, having previously done so in February and May.
Interestingly, some financial experts had anticipated a cut. Renowned economist Bismark Rewane had projected a 25 basis point reduction, citing a slowdown in global inflation and easing price pressures within Nigeria. Similarly, the Manufacturers Association of Nigeria (MAN), through its Director-General Segun Ajayi-Kadir, expressed hopes for a rate cut to ease the burden on manufacturers and stimulate industrial growth.
However, the MPC’s decision signals a cautious approach, aimed at consolidating gains in price stability before loosening monetary conditions.
