The Central Bank of Nigeria (CBN) has once again retained the country’s Monetary Policy Rate (MPR) at 27.5 percent, marking the third consecutive time in 2025 that the rate has remained unchanged.
Governor Olayemi Cardoso announced the decision on Tuesday during a press briefing at the end of the Monetary Policy Committee’s (MPC) 301st meeting held in Abuja. The MPR serves as the benchmark interest rate in Nigeria, upon which all other interest rates are based.
Cardoso explained that members of the MPC voted to retain the MPR at 27.5 percent and adjust the asymmetric corridor to +500 and -100 basis points around the MPR. The committee also resolved to maintain the cash reserve ratio (CRR) at 50 percent and the liquidity ratio at 30 percent.
“The committee decided to retain the rate to sustain the momentum of disinflation and sufficiently contain price pressure,” Cardoso said, highlighting the committee’s cautious optimism amid signs of economic recovery.
The decision follows recent data showing Nigeria’s headline inflation dropped to 22.22 percent in June 2025 from 22.97 percent in May—its third consecutive monthly decline. Cardoso attributed the moderation to “the stability in the foreign exchange market and the decline in energy prices.”
Despite these improvements, the governor cautioned against complacency. “Members observed the uptick in month-on-month headline inflation, suggesting the persistence of underlying price pressures,” he said.
The committee also discussed external threats that could reverse recent gains. “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 warned.
He added that the committee would continue to conduct “rigorous assessment of economic conditions, price developments and outlook to inform future policy decisions.”
Cardoso also noted ongoing improvements in the financial sector, stating that “the continued stability in the banking system, evidenced by the stable financial soundness indicators, would further be supported by the ongoing banking recapitalisation exercise.”
The retention of the MPR at 27.5 percent comes after similar decisions in February and May this year, as the CBN continues its efforts to balance inflation control with economic growth.
Follow us on:
