CBN Retains Interest Rate at 26.25%, Says Nigeria’s Foreign Reserves Hit $40.1bn

The Central Bank of Nigeria (CBN) has maintained its benchmark interest rate, the Monetary Policy Rate (MPR), at 26.25%, following the 301st meeting of its Monetary Policy Committee (MPC) held on July 21st and 22nd, 2025, in Abuja.

CBN Governor, Olayemi Cardoso, who disclosed this at the post-meeting briefing on Tuesday, said the decision to hold the rate was driven by the need to consolidate recent gains in curbing inflation and to ensure continued price stability across the economy.

Cardoso explained that the MPC opted to retain the asymmetric corridor at +500/-100 basis points around the MPR, while the Cash Reserve Ratio (CRR) for Deposit Money Banks remains at 50%, with the Liquidity Ratio pegged at 30%.

He revealed that as of July 18, Nigeria’s foreign reserves stood at $40.1 billion, providing import cover for approximately nine and a half months a positive indicator for macroeconomic stability and trade confidence.

“The MPC acknowledged the decline in headline inflation in June 2025 the third consecutive month of moderation driven by easing energy costs and improved stability in the foreign exchange market,” Cardoso noted.

However, he cautioned that despite this progress, a slight uptick in month-on-month inflation indicated the persistence of underlying price pressures.

“The Committee remains committed to maintaining a tight monetary policy stance to manage these inflationary threats and sustain the downward momentum,” he said.

Cardoso also pointed to ongoing global challenges, including tariff wars and geopolitical tensions, as factors that could disrupt global supply chains and place renewed pressure on the cost of imported goods.

Looking ahead, he said the CBN, in coordination with fiscal authorities, would continue its efforts to reduce Nigeria’s inflation rate to single digits, while ensuring rigorous assessments of domestic and global economic conditions to inform future policy decisions.