In its continued effort at fighting the menace of inflation and stabikise the foreign exchangemarket, the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 27 percent.
The MPR, which serves as the benchmark interest rate for the economy, has remained elevated as the apex regulatory bank intensifies its aggressive measures to curb rising prices, that has drastically put co sumers in the edge.
The decision was announced at the end of the Monetary Policy Committee (MPC) meeting held in Abuja.
Cash Reserve Ratio (CRR) was retained at 45.00% for DMBs, and 16.00% for Merchant Banks, respectively, while the CRR on Mon-TSA public sector deposits was also retained at 75 percent.
Also, the Liquidity Ratio (LR) was left unchanged at 30.0%, while
Asymmetric Corridor adjusted by +50/-450 basis points around the MPR.
Governor, Olayemi Cardoso, explained that the committee’s choice to hold the rate reflects its assessment that current monetary conditions are beginning to yie–ld positive results.
He noted the gradual moderation in headline inflation and improved FX market liquidity as indicators that the tightening measures are working.
Cardoso added that although inflationary pressures persist, maintaining the MPR at 27 percent provides necessary support for sustaining the downward movement in prices while anchoring expectations in the financial markets.
According to the CBN Governor, the decision received overwhelming support from the majority of MPC members.
The MPC reviewed other monetary tools and approved adjustments to strengthen policy transmission.
The standing facilities corridor (SFC) around the MPR was adjusted to +50/-450 basis points, narrowing the upper band while expanding the lower band to give the CBN greater flexibility in managing overnight lending and deposit activities.
At its 302nd meeting in Abuja, the CBN had reduced the MPR by 50 basis points, lowering it from 27.5 percent to its current 27 percent.
The MPC also adjusted the asymmetric corridor at that time to +250/-250 basis points, narrowing it from the previous +500/-100 range.
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These actions marked the early signs of a cautious shift as inflation indicators showed mild improvement.
However businesses are facing high borrowing costs, but the CBN insists that monetary discipline is necessary to restore macroeconomic stability.
The sustained tight stance is also expected to help contain speculative pressures in the FX market and support the naira’s resilience amid global and domestic headwinds.
The last released data from the nation’s Bureau of Statistics (NBS) for October 2025 shows that Nigeria’s headline inflation eased to 16.05% in October 2025, down from 18.02% in September.
Month-on-month inflation rose to 0.93%, higher than 0.72% in September.
However, food inflation eased to 13.12% year-on-year from 39.16% in October 2024, a drop of 26.04 percentage points, following the change in the CPI base year.
The next MPC meeting is scheduled for February 2026.
