The Monetary Policy Committee of the Central Bank of Nigeria has decided to keep the benchmark interest rate at 27 percent. The decision, announced by CBN Governor Olayemi Cardoso after the committee’s 303rd meeting in Abuja, also left all other monetary‑policy indicators unchanged.
The Cash Reserve Ratio (CRR) remains at 45 percent for commercial banks and 16 percent for merchant banks, while the 75 percent CRR on non‑TSA public‑sector deposits is maintained. The Liquidity Ratio stays at 30 percent, and the Standing Facilities Corridor has been adjusted to +50/‑450 basis points around the Monetary Policy Rate.
This stance comes as Nigeria records its seventh consecutive month of declining inflation, which fell to 16.05 percent in September 2025. Retaining the 27 percent interest rate is a notable development given the current economic trends, reflecting a cautious approach to managing the economy.
By keeping the CRR unchanged, the central bank aims to preserve stability in the banking sector and ensure that banks have sufficient liquidity to meet their obligations. The modification of the Standing Facilities Corridor, which defines the range for the central bank’s lending and borrowing rates, may influence the overall direction of interest rates, affecting borrowing costs for individuals and businesses.
As Nigeria continues to navigate its economic challenges, the Central Bank’s decisions will be closely watched. The combination of a steady interest rate and unchanged monetary‑policy indicators is likely to have significant implications for the country’s economic trajectory. With inflation on a downward trend, the central bank’s next moves will be crucial in shaping the pace of growth and stability in the coming months.
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