CBN Retains Monetary Policy Rate at 27.50%
Oru Leonard
The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 27.50 percent, citing the need to sustain disinflation momentum and contain price pressures. The decision was made during the 301st meeting of the Monetary Policy Committee (MPC) on July 21 and 22, 2025.
The Governor of Central Bank of Nigeria (CBN), Olayemi Cardoso addressing the media after the MPC meeting said she
Monetary Policy Rate was retained at 27.50 percent to address existing and emerging inflationary pressures.
Asymmetric Corridor was also maintained at +500/-100 basis points around the MPR; Cash Reserve Ratio was retained at 50.00 percent for Deposit Money Banks and 16.00 percent for Merchant Banks while Liquidity Ratio was kept unchanged at 30.00 percent.
The MPC pointed some Economic Developments to include, Headline inflation declined to 22.22 percent in June 2025, driven by moderation in energy prices and stability in the foreign exchange market; Food Inflation rose to 21.97 percent in June 2025, attributed to increased cost of processed food; while
Core Inflation increased to 22.76 percent in June 2025, reflecting uptick in cost of Information & Communication, Housing & Utilities, and Personal care & Social services.
On the outlook the MPC expects inflation to decline further in the coming months, supported by the current tight monetary policy stance, stable exchange rate, and moderation in food prices as the harvest season approaches. The Committee remains committed to the Bank’s price stability mandate and will take appropriate measures to foster stability and confidence in the economy.
Reflecting on additional developments; Eight banks have fully met the recapitalization requirements, while others are making progress towards meeting the deadline; Gross External Reserves rose to $40.11 billion on July 18, 2025, representing about 9.5 months of import cover for goods; while on Real GDP Growth, the economy grew by 3.13 percent in the first quarter of 2025, compared with 2.27 and 3.38 percent in the corresponding and preceding quarters of 2024, respectively.
