July 23, 2025/CSL Research

• The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) voted to keep the benchmark policy rate unchanged at 27.5%, the third hold decision this year.
• The decision to maintain the policy rate was driven by a combination of persistent domestic inflationary pressures and heightened uncertainty in the global economic environment, both of which continue to pose upside risks to the inflation outlook.
• Nevertheless, we maintain our forecast that the MPC will reduce interest rates by 100-150 basis points before the end of the year, supported by an expected improvement in the macroeconomic environment.

In line with our expectations (see CSL Pre-MPC note: “CBN to hold MPR steady at July MPC meeting”, 21 July), the MPC of the CBN voted to leave the Monetary Policy Rate (MPR) steady at 27.5% for the third consecutive meeting this year. The other key policy parameters were also left unchanged: cash reserve requirement (CRR) for deposit money banks at 50.0% and 16.0% for merchant banks, the Liquidity ratio at 30.0%, and the asymmetric corridor around the MPR at +500/-100 basis points.

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​​​​​​​CSL Macro Report – July MPC decision.pdf​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​