According to a statement from the Nigerian apex bank today, the Central Bank of Nigeria (CBN)
Monetary Policy Committee (MPC) prepares to hold its 301st meeting on Monday, July 21st, and Tuesday, July 22nd, 2025. This crucial two-day deliberation, scheduled to take place at the CBN headquarters in Abuja, comes following moderation in inflation and signs of improved foreign exchange stability.
the upcoming meeting follows the MPC’s decision in May 2025 (its 300th meeting) to maintain the Monetary Policy Rate (MPR) at 27.50 percent, along with other key parameters like the asymmetric corridor, Cash Reserve Ratio (CRR), and Liquidity Ratio. That unanimous decision, supported by all 12 MPC members, reflected a cautious stance, aiming to allow previous policies to take effect and to monitor evolving macroeconomic fundamentals.
Analysts are keenly observing the current economic landscape, Nigeria’s headline inflation rate has slowed for the third consecutive month, reaching 22.22 percent in June 2025, down from 22.97 percent in May.
The CBN’s recent efforts to foster transparency and credibility in the FX market, including the implementation of the Electronic Foreign Exchange System (EFEMS), are also contributing to improved FX liquidity and investor confidence.
However, the MPC faces a complex balancing act. While inflation shows signs of slowing, it remains significantly above the CBN’s target. Concerns also persist regarding structural challenges such as insecurity and high transport costs, which continue to exert cost-push pressures on prices. Furthermore, the committee in its last meeting had warned against premature rate cuts that could destabilize the Naira, especially as its recent gains have been supported by attractive yields on Open Market Operation (OMO) bills.
Market watchers are divided on the likely outcome of the 301st meeting. Some analysts anticipate the MPC will maintain its current policy stance, preferring a “wait and see” approach to consolidate recent gains and ensure sustained stability.
