According to the Central Bank of Nigeria (CBN), the Monetary Policy Committee (MPC), which makes important interest rate decisions, will meet for the 301st time on Monday, July 21, and Tuesday, July 22, 2025.
According to the apex bank’s notice, the meeting will take place in the MPC Meeting Room at the CBN headquarters in Abuja. The MPC decided to maintain the benchmark policy rate at 27.50 percent by unanimous vote at its most recent meeting in May.
The choice demonstrated cautious optimism in the face of strengthening macroeconomic fundamentals. The Committee had observed that declining Premium Motor Spirit (PMS) prices, a positive trade balance, and closing gaps between the official and parallel exchange rates suggested that inflationary pressures might be lessened.
In order to maintain market confidence, members also emphasized the significance of maintaining continuous monetary reforms and acknowledged the relative stability of the foreign exchange market.
Notwithstanding indications of disinflation and foreign exchange stability, analysts at Afrinvest Securities Limited predict that the MPC will stick to its policy position.
They ascribed their forecast to ongoing external threats, recent flooding and insecurity-related food supply shocks, and uncertainty brought on by the postponed release of Nigeria’s rebased Q1 2025 GDP figures.
The MPC had cautioned at the May meeting that reinflationary pressures were still very much present and that keeping interest rates high was essential to reducing those risks.
Additionally, given that the current FX rate gains have been bolstered by alluring yields on Open Market Operation (OMO) bills, the Committee expressed concern that any premature rate cut could destabilize the naira.
