The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27.5 percent to 27 percent.
CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at a press briefing in Abuja following the Monetary Policy Committee (MPC) meeting.
Cardoso explained that the Committee’s resolution was informed by sustained disinflation recorded over the past five months and projected inflation declines through the remainder of 2025. He noted that the move was also intended to consolidate ongoing economic recovery efforts.
As part of the decisions, the MPC adjusted the standing facilities corridor around the MPR to +250/-250 basis points, raised the Cash Reserve Requirement (CRR) for commercial banks to 45 percent while maintaining 16 percent for merchant banks, and introduced a 75 percent CRR on non-TSA public sector deposits. The Liquidity Ratio was retained at 30 percent.
“The moderation in inflation provides scope for easing the policy rate in a manner that supports growth, while the adjustment of the standing facilities corridor will improve the efficiency of the interbank market and strengthen monetary policy transmission,” Cardoso stated.
The latest policy adjustment marks a balancing act by the apex bank between curbing inflationary pressures and ensuring liquidity to drive economic activity.
