The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained all the current monetary policy parameters in a bid to sustain the momentum of disinflation and sufficiently contain price pressures.

The decision was reached by all twelve members of the Committee’s 301st meeting held on July 21 and 22, 2025 in Abuja to review recent economic and financial developments.

Briefing journalists after the Committee’s meeting, the Governor of the Central Bank of Nigeria, Olayemi Cardoso said, “the Committee decided to maintain the current monetary policy stance to retain the Monetary Policy Rate (MPR) at 27.50 per cent; Maintain the asymmetric corridor around the MPR at +500/-100 basis points;
Retain the Cash Reserve Ratio (CRR) for Deposit Money Banks at 50.00 per cent and for Merchant Banks at 16.00 per cent, and keep the Liquidity Ratio unchanged at 30.00 per cent.

“Maintaining the current policy stance will continue to address the existing and emerging inflationary pressure. The MPC will continue to undertake rigorous assessment of economic conditions, price development and outlook to inform future policy decisions”, Cardoso said.

The Committee also attributed the rate of deflation to the stability in the foreign exchange market and moderation in energy prices.

“The Committee acknowledged the decline in headline inflation in June 2025, the third consecutive month of deceleration. This was largely driven by the moderation in energy prices and stability in the foreign exchange market. Despite these positive developments, Members observed the uptick in month-on-month headline inflation, suggesting the persistence of underlying price pressures. The continued global uncertainties associated with the tariff wars and geopolitical tensions could further
exacerbate supply chain disruption and exert pressure on the prices of imported items”.

While acknowledging the continued stability in the banking system, evidenced by the stable Financial Soundness Indicators (FSIs) which would further be supported by the
on-going banking recapitalisation exercise, it noted that eight (8) banks have fully met the recapitalisation requirements, while others are making progress towards meeting the deadline.

It further urged the Management of the Bank to sustain its oversight of the banking system to ensure continued resilience, safety and soundness of the financial system.