The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to retain the Monetary Policy Rate (MPR) at 27 per cent.
CBN Governor, Olayemi Cardoso, announced the decision on Tuesday in Abuja at the end of the MPC’s 303rd meeting.
At its previous sitting, the Committee reduced the benchmark interest rate from 27.5 per cent to 27 per cent, trimmed the Cash Reserve Ratio (CRR) for commercial banks to 45 per cent, maintained 16 per cent for merchant banks, and introduced a 75 per cent CRR on non-TSA public sector deposits.
Cardoso said Tuesday’s decision reflects the Committee’s resolve to allow room for a clearer assessment of near-term economic conditions.
He stated that the MPC retained the MPR at 27 per cent, kept the CRR at 45 per cent for commercial banks and 16 per cent for merchant banks, maintained the 75 per cent CRR on non-TSA public sector deposits, retained the Liquidity Ratio at 30 per cent, and adjusted the Standing Facilities Corridor to +50 and -450 basis points around the MPR.
Expectations of another rate cut had risen after the release of October inflation figures showing continued moderation.
Nigeria’s annual inflation eased to 16.05 per cent in October 2025—its lowest level since March 2022—boosting confidence that price pressures are easing after months of strain on households and businesses.
The CBN had implemented one of its most aggressive tightening cycles between February 2023 and May 2025, raising the MPR by a cumulative 1,000 basis points to tackle inflation, which had surged above 30 per cent before the rebasing of the Consumer Price Index (CPI).
With inflation now decelerating, the apex bank delivered its first interest rate cut in three years in August 2025, signaling a gradual shift towards a more balanced monetary stance that considers both price stability and economic recovery.
Cardoso noted that holding the rate steady would help the Committee monitor unfolding economic trends before taking further action.