The Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) has unanimously decided to retain the country's benchmark interest rate at 27.50 percent for the third consecutive meeting. This decision was announced by CBN Governor Olayemi Cardoso at the conclusion of the 301st MPC meeting in Abuja on Tuesday, July 22, 2025. The interest rate was previously held at 27.50 percent in February and May 2025.
The committee's decision comes despite expectations from some business leaders and economists, including Bismark Rewane and Segun Ajayi-Kadir of the Manufacturers Association of Nigeria, who had anticipated an interest rate cut. Their expectations were based on the sustained moderation in Nigeria’s annual inflation rate, which eased to 22.22 percent in June 2025 the lowest since April 2023.
In addition to the interest rate, the MPC also maintained other key monetary parameters: the Cash Reserve Ratio (CRR) for Deposit Money Banks remains at 50 percent and for Merchant Banks at 16 percent. The liquidity ratio (LR) was kept at 30 percent, and the asymmetric corridor around the Monetary Policy Rate (MPR) stayed at +500/-100 basis points.
While headline inflation has continued to decline, core inflation saw a slight increase to 22.76 percent in June from 22.28 percent in May. Month-on-month inflation also rose slightly to 1.68 percent. The CBN emphasized that maintaining a steady monetary policy stance is crucial to fully unwind inflationary shocks, also noting risks from global trade tensions and geopolitical volatility that could fuel imported inflation.
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