CBN Maintain Interest Rate at 27.5%

The Central Bank of Nigeria (CBN) has decided to keep the country's Monetary Policy Rate (MPR) at 27.5 percent, marking the third consecutive meeting in 2025 where the rate has not changed. 

Governor Olayemi Cardoso announced this decision on Tuesday following the Monetary Policy Committee's (MPC) 301st meeting in Abuja. The MPR is the primary interest rate in Nigeria that influences all other rates. 

Cardoso mentioned that MPC members voted to maintain the MPR at 27.5 percent while adjusting the asymmetric corridor to +500 and -100 basis points around the MPR. Additionally, the committee chose to keep the cash reserve ratio (CRR) at 50 percent and the liquidity ratio at 30 percent. 

Cardoso indicated that the committee's decision aimed to sustain disinflation momentum and manage price pressures effectively, reflecting cautious optimism amid signs of economic recovery. 

This decision comes on the heels of recent data showing that Nigeria's headline inflation decreased to 22.22 percent in June 2025 from 22.97 percent in May, marking the third straight month of decline. 

The governor credited this moderation to the stability in the foreign exchange market and a reduction in energy prices. However, he warned against complacency, noting an increase in month-on-month headline inflation, which points to ongoing underlying price pressures. 

The committee also considered external risks that could undermine recent progress, with Cardoso cautioning about ongoing global uncertainties tied to tariff conflicts and geopolitical issues, which could worsen supply chain disruptions and push up prices of imported goods. 

He mentioned that the committee would persist in conducting thorough evaluations of economic conditions, price trends, and forecasts to guide future policy decisions.

Cardoso also highlighted positive developments in the financial sector, reassuring that stability in the banking system, reflected by strong financial soundness indicators, would be further enhanced by the ongoing banking recapitalization efforts. 

The decision to maintain the MPR at 27.5 percent follows similar choices made in February and May this year, as the CBN strives to manage inflation while promoting economic growth.