Summary:

—> Monetary Policy Rate: 27.50%.

—> Asymmetric Corridor: +500/-100 basis points around the MPR.

—> CRR of Deposit Money Banks: 50.00%.

—> CRR of Merchant Banks: 16.00%.

—> Liquidity Ratio: 30.00%.

Market Implication

Fixed Income

Despite the Committee’s decision to keep rate constant, we expect yields in the fixed income market to continue on a broadly downward path – though we might see some zig-zag movement in the near team as investors increasingly price in the likelihood of a rate cut later in the year, possibly at the September MPC meeting.

Equities Market

The sustained decline in fixed income yields could continue to drive capital reallocation into the equities market. So far, the equities market has benefited from a wave of optimism, underpinned by an improving economy, relative FX stability, and expectations of strong H1 2025 earnings.

Click here “July 2025 MPC Decision – Cautious Stance Maintained” to view the full report.

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