Nigeria’s central bank maintained its benchmark interest rate at 27.5% following Tuesday’s 301st Monetary Policy Committee session held on July 22, 2025.
Governor Dr. Olayemi Cardoso explained to media representatives that the committee chose to keep rates unchanged to maintain the current disinflationary momentum in the economy.
Cardoso emphasised that the decision was “premised on the need to sustain disinflation and sufficiently contain price pressure,” reflecting the committee’s measured optimism regarding recent economic developments.
The unanimous vote from all twelve MPC members to retain the 27.5% rate demonstrates unified policymaker sentiment amid persistent inflation concerns and foreign exchange market instability.
This benchmark rate remains central to the apex bank’s inflation-fighting strategy, as price increases continue to exceed the CBN’s target range despite recent moderation.
The committee implemented the following measures:
Maintained MPR at 27.5%
Preserved asymmetric corridor parameters at +500/-100 basis points around the MPR
Kept Cash Reserve Ratio unchanged at 45% for deposit money banks and 10% for merchant banks
Sustained liquidity ratio at 30%
Governor Cardoso stated that continuing the current policy approach “will continue to address existing and emerging inflationary pressure. The MPC will continue to undertake rigorous assessment of economic conditions, price developments and outlook to inform future policy decisions.”
Market experts had mixed expectations before the meeting, with some anticipating modest rate increases to strengthen the naira, while others predicted maintenance due to growth concerns.
The decision to hold rates reflects the Bank’s strategy of balancing inflation management with economic stability as businesses and consumers navigate challenging macroeconomic conditions.
Recent CBN survey data indicate that 62.4% of Nigerian respondents favour interest rate reductions, highlighting widespread concerns about borrowing costs and monetary policy’s impact on households and businesses.
When choosing between maintaining high rates for inflation control versus lowering them for easier credit access, 45% supported rate cuts, while 40.3% backed increases to combat inflation. The remaining participants remained neutral or undecided.
The survey also revealed significant public pessimism about Nigeria’s economic trajectory should inflation continues rising unchecked.
