The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 27.5%, marking the seventh consecutive time it has held the rate steady. This decision was reached at the 301st meeting of the Monetary Policy Committee (MPC), held on Tuesday, July 22, 2025.
CBN Governor Dr. Olayemi Cardoso, who addressed the media after the meeting, said the committee’s decision aimed to sustain the ongoing disinflationary trend and manage price pressures within the economy.
“The decision was premised on the need to sustain disinflation and sufficiently contain price pressure,” Cardoso stated, noting the MPC’s cautious optimism regarding recent economic signals.
All 12 MPC members voted unanimously to retain the MPR at 27.5%, reflecting a shared stance amid persistent inflation and foreign exchange volatility.
Key Highlights from the Meeting:
- MPR: Retained at 27.5%
- Asymmetric Corridor: Maintained at +500/-100 basis points around the MPR
- Cash Reserve Ratio (CRR): Kept at 50% for Deposit Money Banks and 16% for Merchant Banks
- Liquidity Ratio: Held steady at 30%
Cardoso emphasized that maintaining the current policy stance would help the apex bank stay on course in addressing inflation without disrupting economic stability.
“The MPC will continue to undertake rigorous assessment of economic conditions, price developments and outlook to inform future policy decisions,” he said.
Ahead of the meeting, market analysts were split on expectations—some predicted a rate hike to bolster the naira, while others foresaw a hold due to weak growth prospects. Ultimately, the committee prioritized economic stability and inflation control.
Public Sentiment:
A recent CBN survey revealed that 62.4% of Nigerians support a reduction in interest rates, reflecting widespread concern over high borrowing costs. When asked to choose between curbing inflation through high rates or easing credit access via lower rates:
- 45% preferred lower interest rates,
- 40.3% supported higher rates to tackle inflation,
- The remainder were undecided.
The survey also noted a prevailing sense of pessimism about Nigeria’s economic outlook if inflation remains unchecked.
Conclusion:
By holding rates steady, the CBN signaled its commitment to a cautious, data-driven monetary policy—balancing inflation control with efforts to foster economic recovery in a complex and uncertain environment.
