The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 27%, reinforcing its commitment to curbing inflation and stabilizing the foreign exchange market. The decision, announced following the 303rd Monetary Policy Committee (MPC) meeting in Abuja, reflects the committee’s view that current monetary conditions are yielding positive results.
CBN Governor Olayemi Cardoso highlighted that recent data indicates a gradual moderation in headline inflation and improved liquidity in the foreign exchange market, signaling that the bank’s tight monetary stance is effective. While inflationary pressures persist, he emphasized that holding the rate steady will help sustain the downward trend in prices and anchor market
– Monetary Policy Rate (MPR) retained at 27.00%
– Cash Reserve Ratio (CRR) for commercial banks held at 45.00% while merchant banks remain at 16.00%
– Liquidity Ratio (LR) unchanged at 30.0%
– Asymmetric corridor adjusted to **+50/-450 basis points around the MPR.
The adjustment to the asymmetric corridor is designed to enhance the CBN’s flexibility in managing overnight lending and deposit activities. The committee also reaffirmed its focus on effective liquidity management through the retention of existing CRR levels.
This meeting follows a 50-basis-point reduction in the MPR at the previous MPC gathering, which brought the rate down from 27.5% to 27%. The latest decision to maintain the rate aligns with the CBN’s strategy of ensuring monetary discipline to restore macroeconomic stability, despite concerns from businesses about high borrowing costs.
Recent economic indicators support the CBN’s approach. Data from the National Bureau of Statistics (NBS) for October 2025 shows headline inflation easing to 16.05%, down from 18.02% in September. Food inflation also saw a significant decline, dropping to 13.12% year-on-year from 39.16% in October 2024.
Additionally, the naira has shown resilience in the foreign exchange market, appreciating ahead of the MPC meeting. The CBN expects its sustained tight monetary policy to further alleviate speculative pressures and support the currency amid global and domestic challenges.
Looking Ahead
With the for February 2026, stakeholders will monitor inflation trends closely to assess whether conditions warrant a shift toward a more accommodative monetary policy. For now, the CBN remains focused on consolidating the gains achieved through its current measures.
