The Central Bank of Nigeria (CBN) has decided to keep the country’s interest rate steady at 27.5%, following its latest Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday, July 22.

CBN Governor Olayemi Cardoso, who announced the outcome of the meeting, said all members of the committee unanimously agreed to maintain the current rate, citing signs of a sustained decline in inflation. As of July, Nigeria’s inflation rate stood at 22.22%, showing some improvement.

Alongside holding the interest rate (also known as the Monetary Policy Rate or MPR), the committee also retained other key economic indicators:

Cash Reserve Ratio (CRR): 50% for Deposit Money Banks and 16% for Merchant Banks

Liquidity Ratio (LR): 30%

Asymmetric Corridor: +500/-100 basis points around the MPR

This marks the third straight time the CBN has maintained the 27.5% rate, after similar decisions in February and May 2025.

Mixed Reactions from Economists and Industry Experts

Economic analysts had mixed expectations going into the meeting. Renowned economist Bismark Rewane had earlier predicted a possible 25 basis point rate cut, pointing to rising global inflation and Nigeria’s improving domestic figures.

Manufacturers, under the umbrella of the Manufacturers Association of Nigeria (MAN), had also hoped for a rate cut to ease the burden of borrowing and encourage business growth.

Despite the disappointment for those hoping for lower rates, the CBN appears to be taking a cautious approach, aiming to maintain price stability and consolidate gains made in inflation control.

Meanwhile, Nigeria’s economy continues to grow, with GDP hitting ₦372.8 trillion in 2024, following a recent rebasing exercise.

More updates on how this decision impacts businesses and consumers to follow.