Highlights

Against the backdrop of moderating inflation and relative stability in the foreign exchange market, the MPC maintained its cautious stance, voting to keep the monetary policy rate and other key parameters unchanged for the second consecutive time, as it continues to monitor emerging trends and challenges closely.

In 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%.

Outlook

Following the global uncertainty and lower oil prices that intensified in Q2 2025, we had expected the MPC to hold rates in its meeting for the quarter. While a rate cut could ease borrowing costs for businesses, thereby providing some relief to the private sector, the potential adverse impact of these external factors on foreign portfolio inflows (FPI) and FX inflows from oil receipts poses a significant risk to the recent moderation observed in inflationary pressures.

Click here “May 2025 MPC Decision – Rates Remained Unchanged for the Second Consecutive Time” to view the full report.

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