The Central Bank of Nigeria (CBN) has decided to keep the Monetary Policy Rate (MPR) steady at 27.5%, marking the seventh consecutive meeting without a change, as announced during the 301st Monetary Policy Committee (MPC) meeting on July 22, 2025. CBN Governor Dr. Olayemi Cardoso, addressing journalists, emphasized that the decision aims to sustain the ongoing decline in inflation while managing price pressures.
The unanimous vote by all 12 MPC members reflects a cautious approach to balancing inflation control with economic stability. Key policy settings were also retained, including the asymmetric corridor around the MPR at +500/-100 basis points, the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks, and the Liquidity Ratio at 30%. Cardoso noted that this stance would continue to address both existing and emerging inflationary pressures, with the MPC committed to closely monitoring economic trends to guide future decisions.
The decision comes amid mixed expectations from analysts, with some anticipating a slight rate hike to bolster the naira and others favoring a hold due to concerns over slow economic growth. Despite recent progress in curbing inflation, it remains above the CBN’s target, prompting the bank to prioritize price stability while navigating a challenging economic landscape.
A recent CBN survey highlighted public concern over high borrowing costs, with 62.4% of respondents advocating for lower interest rates to ease credit access. Meanwhile, 45% supported rate reductions, while 40.3% favored higher rates to combat inflation, reflecting divided sentiments. The survey also noted growing unease about the economy’s trajectory if inflation continues unchecked.
The CBN’s steady policy approach underscores its focus on maintaining disinflationary trends while fostering gradual economic recovery. As businesses and households grapple with high borrowing costs, the bank’s future moves will be critical in shaping Nigeria’s economic outlook.
