News Report – July 23, 2025
The Central Bank of Nigeria (CBN) has, for the third consecutive time, retained the Monetary Policy Rate (MPR) at 27.5 percent, reflecting a cautious stance amid signs of a gradual decline in the country’s inflationary pressures.
The announcement was made on Tuesday during the conclusion of the Monetary Policy Committee (MPC) meeting held in Abuja. CBN Governor Olayemi Cardoso said the decision to maintain the current rate was driven by the need to consolidate recent gains in inflation control while supporting overall economic stability.
According to recent data from the National Bureau of Statistics (NBS), Nigeria’s inflation rate has declined for the third month in a row, sparking cautious optimism among policymakers and investors. Cardoso noted that although inflation remains above ideal levels, the steady slowdown indicates that the monetary tightening measures implemented earlier in the year are beginning to yield results.
“We are seeing encouraging signs, but it is too early to ease,” Cardoso said. “Maintaining the MPR at 27.5% allows us to observe the trend further while ensuring the economy does not overheat again.”
Analysts view the CBN’s stance as a signal of policy consistency and fiscal prudence. By holding the rate steady, the apex bank aims to strike a balance between curbing inflation and avoiding disruptions to the nascent economic recovery.
The committee also reaffirmed its commitment to stabilizing the exchange rate, strengthening the naira, and ensuring a conducive environment for investment and credit growth.
The retention of the policy rate comes amid other macroeconomic improvements, including rising external reserves and modest GDP growth in key sectors. However, the MPC warned that external risks such as global commodity price volatility and domestic food insecurity could still pose threats to inflation targets.
The next MPC meeting is expected in September 2025, where further assessments will determine the next course of action on interest rates.
