The Central Bank of Nigeria (CBN) held its Monetary Policy Rate (MPR) steady at 27.50% following its Monetary Policy Committee (MPC) meeting on July 21–22, reflecting a cautious stance aimed at consolidating recent economic gains and sustaining disinflation. The MPC also maintained the Cash Reserve Ratio (CRR) at 50% for commercial banks and 16% for merchant banks, alongside an unchanged Liquidity Ratio of 30% and an asymmetric corridor of +500/-100 basis points around the MPR.

The decision came amid mixed expectations, with some analysts calling for a rate cut to boost liquidity in the real sector, while others advised caution due to high inflation, which stood at 22.22% in June, marking the third consecutive monthly decline. The MPC stated that the decision was driven by the need to “sustain the momentum of disinflation and contain price pressures,” while continuing to monitor macroeconomic indicators closely.

Analysts at Afrinvest, Meristem Securities, and Cordros Securities broadly supported the CBN’s stance, noting that improved macro conditions—such as forex stability, rebounding capital inflows, and positive earnings expectations—are likely to foster investor confidence and support moderate growth in the real and financial sectors. Nigeria’s official exchange rate appreciated slightly to N1,534.72/$, while improved liquidity conditions pushed the Open Buy Back and overnight rates down by over 5% last week