By Nchetachi Chukwuajah
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (also known as the interest rate) at 27 per cent.
The MPC’s resolution was announced by the CBN Governor, Olayemi Cardoso, following the committee’s 303rd meeting in Abuja on Tuesday, November 25.
This extends the MPC’s decision to pause further monetary tightening.
Cardoso noted that the majority of MPC members agreed that holding the current rate was the most appropriate step given the prevailing economic indicators.
He added that members did not consider the economic environment stable enough to justify another rate cut.
“The committee decided by a majority vote to maintain the monetary policy stance,” Cardoso said.
The decision follows a 50-basis-point reduction in September 2025 from 27.50 percent to 27 per cent, which was the committee’s first and only downward adjustment since the current monetary tightening cycle began under the present CBN leadership.
At Tuesday’s meeting, the MPC pegged the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks, 16 per cent for merchant banks, and 75 per cent on non-TSA public sector deposits.
It also maintained the Liquidity Ratio (LR) at 30 per cent, adjusting the Standing Facilities Corridor to +50 /-450 basis points around the MPR.
The committee noted that the decisions reflect its focus on achieving low and stable inflation as it welcomed the continued deceleration in headline inflation, driven by sustained monetary tightening, a stable exchange rate, and petrol price stability.
It also noted that inflation remains high, necessitating continued and coordinated policy efforts to bring it down further.
Recall that in 2024, the MPC had raised interest rates six times in response to soaring inflation and pressures on the naira.
Though inflation has shown signs of easing, the committee stressed that a cautious approach would be best to monitor the durability of economic improvements.
The MPC also acknowledged progress in bank recapitalisation, confirming that 16 banks have met regulatory requirements.
On the global outlook, the CBN governor foresees a recovery in the medium term, as tough trade tensions between the United States and key trading partners may constrain growth.
The committee also projected global inflation will remain above pre-pandemic levels in the near term.
Cardoso further reaffirmed commitment to evidence-based monetary policy to safeguard price stability and strengthen financial system resilience.
