BY BONNY AMADI
In line with expectation for a HOLD outcome, the Central Bank of Nigeria (CBN) on Tuesday maintained a hold stance at the conclusion of its 301st Monetary Policy Committee (MPC) meeting held on July 22, 2025.
The Committee unanimously agreed to retain all key monetary policy parameters, underscoring a cautious approach amid mixed macroeconomic signals.
Specifically, the Committee after the meeting announced the decisions reached, which include, to hold the Monetary Policy. Rate (MPR) steady at 27.50 per cent, Retain the Cash Reserve Ratio (CRR) at 50.00 per cent for Deposit Money Banks and 16.00% for Merchant Banks, to keep the Liquidity Ratio unchanged at 30.00 per cent and also maintained the Asymmetric Corridor at +500/-100 basis points around the MPR.
According to the post MPC meeting report, the MPC’s decision was anchored on the observed moderation in headline inflation for the third consecutive month, largely driven by relative stability in the foreign exchange market. However, the Committee also noted the renewed pressures from rising food and core inflation indices recorded in June 2025.
While acknowledging the persistent inflationary pressures, members highlighted that the risks are increasingly linked to external factors such as escalating global tariffs, geopolitical tensions in the Middle East, and their potential spillover effects on imported inflation. The Committee resolved that a hold strategy remains appropriate at this time, pending further clarity on the domestic and global inflation outlook.
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