Central Bank Of Nigeria decision on Interest Rate in a Meeting

CBN Interest rate decision 

 The Central Bank of Nigeria (CBN) has announced that the 301st meeting of the Monetary Policy Committee (MPC), where Nigeria’s critical interest rate decisions are determined, will take place on Thursday, July 31, and Friday, August 1, 2025. The meeting is scheduled to be held at the MPC Meeting Room within the CBN headquarters in Abuja. This upcoming session is drawing strong attention from investors, economists, and market stakeholders as Nigeria continues to navigate a delicate balance between inflation control and economic growth.

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At its previous MPC meeting in May, the Committee voted unanimously to hold the Monetary Policy Rate (MPR) at 27.50 percent. This decision reflected cautious optimism as the country showed signs of macroeconomic recovery. Key indicators cited by the Committee included a narrowing gap between the official and parallel foreign exchange rates, declining pump prices of Premium Motor Spirit (PMS), and a favorable trade balance — all of which signaled potential softening of inflationary pressures.

The MPC also highlighted ongoing stability in the foreign exchange market, emphasizing that maintaining momentum on monetary reforms is crucial to sustaining market confidence and attracting investment. Financial analysts at Afrinvest Securities Limited predict that the CBN is likely to retain its current monetary policy stance in the upcoming July meeting. This expectation is shaped by lingering risks such as food supply shocks driven by recent flooding and heightened insecurity, as well as the uncertainty surrounding the delayed release of Nigeria’s rebased Gross Domestic Product (GDP) figures for the first quarter of 2025.

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Despite the recent signs of disinflation, the Committee had warned in May that inflationary risks remained significant and that prematurely reducing interest rates could destabilize the naira. The currency’s recent resilience has been supported by attractive yields from Open Market Operation (OMO) bills, which continue to draw foreign capital into the Nigerian market.

As anticipation builds for the July 31–August 1 MPC meeting, economic stakeholders across Nigeria and beyond will be closely monitoring the CBN’s decisions, which are expected to play a defining role in shaping monetary direction, investor sentiment, and overall economic stability in the second half of 2025.