“Monetary policy will need to maintain its current stance until risks to inflation recede sufficiently,” says Cardoso.
The Central Bank of Nigeria (CBN) has retained the monetary policy rate (MPR) at 27.5 percent, marking the third time in 2025 the rate has been held steady. CBN Governor Olayemi Cardoso made the announcement on Tuesday after the monetary policy committee’s 301st meeting in Abuja.
Cardoso said the decision was aimed at “sustaining the momentum of disinflation and sufficiently containing price pressure.” He added: “Monetary policy will need to maintain its current stance until risks to inflation recede sufficiently.”
The committee also kept the cash reserve ratio (CRR) at 50 percent and liquidity ratio at 30 percent, while adjusting the asymmetric corridor to +500 and -100 basis points.
Headline inflation declined for a third consecutive month to 22.22 percent in June, down from 22.97 percent in May. Cardoso cited stable exchange rates and moderating energy costs as contributing factors, but warned of persistent underlying pressures.
Gross external reserves have risen to $40.1 billion, supported by stable oil output, rising non-oil exports, and improved capital inflows.