CBN Cuts Monetary Policy Rate to 27%

The Central Bank of Nigeria (CBN) has lowered the Monetary Policy Rate (MPR) by 50 basis points, reducing it from 27.5 percent to 27 percent.

Governor of the Bank, Mr. Olayemi Cardoso, announced the decision on Tuesday during a press briefing following the Monetary Policy Committee (MPC) meeting in Abuja.

According to him, the Committee resolved to:

• Cut the MPR by 50 basis points to 27%.
• Adjust the standing facilities corridor around the MPR to +250/-250 basis points.
• Raise the Cash Reserve Requirement (CRR) for commercial banks to 45%, while retaining that of merchant banks at 16%.
• Introduce a 75% CRR on non-TSA public sector deposits.
• Retain the Liquidity Ratio at 30%.

Mr. Cardoso explained that the rate cut was influenced by sustained disinflation over the last five months, projected declines in inflation for the rest of 2025, and the need to reinforce economic recovery.

He further noted that adjusting the standing facilities corridor was aimed at boosting interbank market efficiency and strengthening monetary policy transmission.

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