CBN Holds Key Rate at 27.5% to Combat Inflation.
Nigeria’s Central Bank Governor Olayemi Cardoso announced on July 22, 2025, that the Monetary Policy Committee (MPC) would hold the policy rate steady at 27.5% for the third time this year . Despite a deceleration in June inflation to 22.22% year-on-year—down from 22.97% in May—the CBN stressed this stance was necessary to sustain disinflation and anchor public expectations .
Cardoso noted that recent inflation drops were largely driven by stable energy prices and FX market calm—and acknowledged global economic risks that could reignite inflationary pressures . The decision aligns with government goals to restore single-digit inflation, balancing Tinubu’s reforms and subsidy removals.
Economists largely expected the unchanged rate, as the MPC had already made aggressive hikes in 2024 to tackle inflation . The CBN’s policy tone signals caution—favoring stability while avoiding recession amid a fragile recovery. Markets now eye FX reserves, fiscal discipline, and inflation forecasts.
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