The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), has voted to retain the Monetary Policy Rate (MPR) at 27.50%.
This was announced during the Committee’s 301st meeting held on Monday and Tuesday in Abuja, to review recent economic and financial developments and the outlook.
CBN Governor, Mr Olayemi Cardoso, who announced the Committee’s decision shortly after the meeting, said the members voted unanimously to retain the MPR at 27.50%; retain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.
He also announced that the Committee retains the Liquidity Ratio (LR) at 30% and the Asymmetric Corridor at +500/-100 basis points around the MPR.
Mr Cardoso explained that the decision was premised on the need to sustain the momentum of disinflation and sufficiently contain price pressures. Noting that maintaining the current policy stance would continue to address the existing and emerging inflationary pressure.
He assured that the MPC would continue to undertake rigorous assessment of economic conditions, price development and outlook to inform future policy decisions.
The apex bank governor while speaking on the Committee’s considerations, said the Committee acknowledged the decline in headline inflation in June 2025, the third consecutive month of deceleration, which was largely driven by the moderation in energy prices and stability in the foreign exchange market.
However, he said despite these positive developments, the Members observed the uptick in month-on-month headline inflation, suggesting the persistence of underlying price pressures.
He pointed out that the continued global uncertainties associated with the tariff wars and geopolitical tensions could further exacerbate supply chain disruption and exert pressure on the prices of imported items.
Cardoso stated that the Members also noted the continued stability in the banking system, evidenced by the stable Financial Soundness Indicators (FSIs) which would further be supported by the on-going banking recapitalisation exercise.
He said the MPC noted that eight (8) banks have fully met the recapitalisation requirements, while others are making progress towards meeting the deadline, thus, the Committee urged the Management of the Bank to sustain its oversight of the banking system to ensure continued resilience, safety and soundness of the financial system.
While stating that the Committee acknowledged the efforts of the Federal Government in improving security and its impact on food production, the governor said the Members urged the government to continue its support towards timely provision of high-yield seedlings, fertilizers, and other critical inputs for the current farming season.
According to him, the MPC also noted the sustained stability in the foreign exchange market, accentuated by improved capital flows, earnings from increased crude oil production, rising non-oil exports and significant reduction in aggregate imports.
He maintained that the recent Gross Domestic Product (GDP) reports released by the National Bureau of Statistics (NBS) shows that the nation’s economy is on a growth trajectory.
He said the external sector also remains stable and resilient despite persisting uncertainties in the global macroeconomic environment, as gross external reserves rose to US$40.11 billion on July 18, 2025, representing about 9.5 months of import cover for goods.
The bank projected a further decline in inflation in the coming months, underpinned by the current tight monetary policy stance, stable exchange rate, declining PMS prices, and moderation in food prices as the harvest season approaches.
