•Cities inflationary pressures, global uncertainties
•Says 8 banks have met recapitalization requirements
By Emma Ujah, Abuja Bureau Chief
The Central Bank of Nigeria (CBN) yesterday retained its benchmark interest rate, Monetary Policy Rate (MPR) at 27.5 percent citing underlying pressure on prices of goods and services as well as continued global uncertainties.
The apex bank also disclosed that eight banks have so far met the new minimum capital requirements.
The Governor of CBN, Mr. Olayemi Cardoso, disclosed this while briefing the press at the end of the 101st Monetary Policy Committee (MPC) meeting, in Abuja, yesterday.
Consequently, the asymmetric corridor around the MPR was retained at +500/-100 basis points, while the Cash Reserve Ratio, CRR was retained at 50 percent for Deposit Money Banks, for merchant banks at 16% and the Liquidity Ratio at 30 percent for all banks.
Cardoso said: “The committee decided to maintain the current monetary policy stance and hold all policy parameters constant as follows: Retain the monetary policy rate MPR at 27.50%; Maintain the asymmetric corridor around the MPR at plus 500 to minus 100 basis points; Retain the Cash Reserve Ratio, CRR for deposit money banks at 50% and for merchant banks at 16%.
Keep the liquidity ratio unchanged at 30%. The decision was premised on the need to sustain the momentum of disinflation and sufficiently contain price pressures. Maintaining the current policy stance will continue to address the existing and emerging inflationary pressure.”
Mr. Cardoso explained that the decision to maintain the current MPR was premised on the need to continue to ensure the ongoing disinflation, while vigorously ensuring declining prices.
According to him, “The MPC will continue to undertake rigorous assessment of economic conditions, price development, and outlook to inform future policy decisions.
“The Committee acknowledged the decline in headline inflation in June 2025, the third consecutive month of deceleration.
“This was largely driven by the moderation in energy prices and stability in the foreign exchange market. Despite these positive developments, members observed the uptick in month-on-month headline inflation, suggesting the persistence of underlying price pressures. The continued global uncertainties associated with the tariff wars and geopolitical tensions could further exacerbate supply chain disruption and exert pressure on the prices of imported items.”
The CBN boss revealed that as of July 18, the nation’s Foreign Reserves stood at $40.1 billion, which could provide import cover for nine and a half months.
He also disclosed that eight banks have achieved the new recapitalisation requirements.
“The MPC noted that eight banks have fully met the recapitalization requirements, while others are making progress towards meeting the deadline. The Committee thus urged the management of the bank to sustain its oversight of the banking system to ensure continued resilience, safety, and soundness of the financial system, price, and other developments.
“Members thus urged the government to continue its support towards timely provision of high-yielding seedlings, fertilizers, and other critical inputs for the current farming season.
“The MPC also noted the sustained stability in the foreign exchange market, accentuated by improved capital flows, earnings from increased crude oil production, rising non-oil exports, and significant reduction in aggregate imports. Real GDP in the first quarter of 2025 grew by 3.13%, compared with 2.27% and 3.38% in the corresponding and preceding quarters of 2024, respectively.”
The CBN Governor further stated: “Available projections suggest that global output recovery continues at a gradual pace. However, recent developments, especially the persistent tariff war and the geopolitical tensions, may continue to disrupt supply chains and exert upward pressure on the price of imports.”
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