The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), held its 301st meeting on July 21st and 22nd, 2025, and voted unanimously to maintain the current monetary policy stance.
The decision indicates the Committee’s commitment to consolidate the recent disinflation trend and mitigate persistent price pressures in the economy. Key parameters retained by the MPC include the Monetary Policy Rate (MPR), retained at 27.50 per cent; the asymmetric corridor maintained at +500/-100 basis points around the MPR; the Cash Reserve Ratio (CRR) at 50.00 per cent for Deposit Money Banks and 16.00 per cent for Merchant Banks; and the Liquidity Ratio at 30.00 per cent.
This decision signals the CBN’s cautious approach, prioritising price stability while closely monitoring the impacts of past rate hikes on inflation, credit, and economic growth.
By holding rates steady, the MPC aims to allow previous tightening measures to continue filtering through the system while avoiding excessive tightening that could stifle investment and consumption.
However, to ensure price stability and restore real sector momentum, the CBN must strengthen monetary policy transmission mechanisms, tighten coordination with fiscal authorities, and intensify data-driven policies.
It should also closely track credit flows to productive sectors and accelerate structural reforms to ease supply-side constraints.
(Nigeria Economic Update Issue 29)
