The Central Bank of Nigeria (CBN) has decided to keep its benchmark interest rate, known as the Monetary Policy Rate (MPR), unchanged at 27.5%. This decision was made in light of ongoing pressures on the prices of goods and services, as well as persistent global uncertainties.
The CBN also reported that eight banks have successfully met the new minimum capital requirements.
Mr. Olayemi Cardoso, the Governor of the CBN, shared this information during a press briefing following the 101st Monetary Policy Committee (MPC) meeting held in Abuja yesterday.
As a result, the asymmetric corridor surrounding the MPR remains set at +500/-100 basis points. Additionally, the Cash Reserve Ratio (CRR) is maintained at 50% for Deposit Money Banks and 16% for merchant banks, while the Liquidity Ratio remains at 30% for all banks.
Cardoso stated, “The committee has decided to maintain the current monetary policy stance, keeping all policy parameters unchanged. This includes retaining the monetary policy rate at 27.50%, maintaining the asymmetric corridor around the MPR at plus 500 to minus 100 basis points, and keeping the Cash Reserve Ratio for deposit money banks at 50% and for merchant banks at 16%. Moreover, the liquidity ratio will remain steady at 30%. This decision is based on the necessity to uphold the momentum of disinflation and effectively manage price pressures. By maintaining the current policy stance, we will continue to tackle existing and emerging inflationary pressures.”
Mr. Cardoso clarified that the choice to sustain the current MPR is grounded in the need to promote ongoing disinflation while diligently working towards lower prices.
He added, “The MPC is committed to conducting thorough assessments of economic conditions, price trends, and projections to guide future policy decisions. The Committee recognized that headline inflation saw a decline in June 2025, marking the third consecutive month of decrease. This trend was primarily influenced by reduced energy prices and stability in the foreign exchange market. However, despite these positive signs, members noted an increase in month-on-month headline inflation, indicating the persistence of underlying price pressures. The ongoing global uncertainties related to tariff wars and geopolitical tensions may further worsen supply chain disruptions and increase the costs of imported goods.”
Consequently, members urged the government to maintain its support by ensuring the timely provision of high-yielding seedlings, fertilizers, and other essential inputs for the current farming season.
