On Tuesday, July 22, 2025, the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) held its 301st meeting, where it decided to retain the Monetary Policy Rate (MPR) at 27.50%. This decision signals the committee’s continued stance on monetary tightening in efforts to manage inflation and stabilize the economy.
Further details from the MPC meeting indicate that the Cash Reserve Ratio (CRR) for Commercial Banks remains at 50%, while that for Merchant Banks is set at 16%. The Liquidity Ratio (LR) was also retained at 30%. These measures are aimed at managing liquidity in the banking system and influencing the flow of credit in the economy.
Additionally, the Asymmetric Corridor around the MPR was maintained at +500 and -100 basis points. This corridor defines the bounds within which the CBN will lend to or borrow from commercial banks, providing a framework for interest rate operations around the benchmark MPR. The retention of these key monetary policy parameters suggests that the MPC believes the current settings are appropriate to address prevailing economic conditions, even as it continues to monitor developments. This move is consistent with the CBN’s efforts to achieve price stability and foster sustainable economic growth.
