CBN Holds Interest Rate Steady at 27.5% for Third Time in 2025
The Central Bank of Nigeria (CBN) has announced that the Monetary Policy Rate (MPR) will remain unchanged at 27.5%, marking the third consecutive time in 2025 that the apex bank has retained this benchmark rate.
The decision, made at the 301st Monetary Policy Committee (MPC) meeting on July 22, 2025, in Abuja, reflects the CBN’s ongoing strategy to maintain economic stability amid inflationary pressures.
Key Details from the MPC Meeting
CBN Governor Olayemi Cardoso revealed the decision during a press briefing, emphasizing the bank’s commitment to sustaining disinflationary trends.
He confirmed that the MPC unanimously agreed to retain the asymmetric corridor around the MPR at +500/-100 basis points, along with other key parameters, including the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks, 16% for Merchant Banks, and the Liquidity Ratio at 30%.
Cardoso also highlighted the federal government’s efforts in improving security, noting its positive impact on food security, which has helped ease inflationary pressures driven by food prices.
The CBN’s cautious approach aims to balance price stability with economic recovery, as inflation, recently recalculated at 24.48% in January 2025 after a Consumer Price Index rebasing, remains a concern.
The MPR serves as Nigeria’s benchmark interest rate, influencing borrowing costs for loans, mortgages, and savings across the economy. By holding the rate at 27.5%, the CBN signals confidence in recent macroeconomic gains, such as improved GDP growth of 3.84% in Q4 2024 and stabilizing exchange rates through measures like the Electronic Foreign Exchange Matching System.
However, analysts warn that sustained collaboration between monetary and fiscal authorities is crucial to prevent a resurgence of inflation, which could challenge Nigeria’s economic stability.
With the next MPC meeting scheduled for September 2025, stakeholders are closely watching how the CBN navigates ongoing challenges, including exchange rate volatility and global economic risks like U.S. trade tariffs.
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