The Central Bank of Nigeria (CBN) on Tuesday decided to hold the benchmark interest rate, known as the monetary policy rate (MPR), at 27 per cent to rein in inflation.
The apex bank took the decision at its 303rd Monetary Policy Committee (MPC) meeting, which concluded on Tuesday, November 25.
Briefing newsmen after the 2-day MPC meeting, the CBN Governor, Olayemi Cardoso, said the committee adjusted the standing facility corridor around the MPR at +50/-450 basis points.
Other decisions by the committee were retaining the cash reserve requirement (CRR) for deposit money banks at 45 per cent, merchant banks at 16 per cent, and the non-TSA public sector deposits at 75 per cent.
The committee also kept the liquidity ratio unchanged at 30 per cent.
According to Cardoso, the decision was underpinned by the need to sustain the progress made so far towards achieving low and stable assets.
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He stated that the MPC reaffirmed its commitment to a data-driven assessment of developments and outlook to guide future policy changes.
On the committee’s considerations, Cardoso said, “The Committee welcomed the continued deceleration in headline inflation year-on-year in October 2025 for the seventh consecutive month.
“This favourable development resulted from several factors, including sustained monetary policy tightening, stable exchange rates, capital flows, and long-term growth.
“In addition, the relative stability in the price of premium motor spirit and improved food supply supported the pace of disinflation.”
He, however, expressed concern that the headline inflation remains high.
According to the CBN governor, the impact of previous tight policy measures is expected to continue in the near term.
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“Thus, maintaining the current stance of policy amidst lingering global uncertainties would allow the effect of previous policy rate hikes to sufficiently transmit to the real economy and further reduce prices.
“Members noted that the robust performance of the external sector, evidenced by the surplus current account and steady accretion to reserves, which have contributed to stability in the exchange rate, has also contributed to the acceleration in inflation,” he said.
He said the MPC commended the collaborative effort of both the fiscal and monetary authorities, which led to the recent upgrade of Nigeria’s sovereign credit rating by major credit rating agencies and the delisting of the country from the FATF grey list, adding that members acknowledged that these positive developments would further boost investor confidence and improve capital flows to the economy.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
