The Central Bank of Nigeria (CBN) keeps the Monetary Policy Rate (MPR) at 27 percent, maintaining a tight monetary policy stance to control inflation. The decision was announced by CBN Governor, Olayemi Cardoso, during the Monetary Policy Committee’s 303rd meeting in Abuja.
According to Mediaplusng.com, the Cash Reserve Ratio (CRR) remains at 45% for commercial banks, 16% for merchant banks, and 75% on non-TSA public sector deposits. The Liquidity Ratio (LR) stays at 30%, while the Standing Facilities Corridor is adjusted to +50 / -450 basis points around the MPR. These measures aim to ensure stability in the banking system and promote price control.
The MPC notes that headline inflation is decelerating, thanks to sustained monetary tightening, a stable exchange rate, and fuel price stability. However, inflation remains high, requiring continued coordinated policy efforts. The Committee also highlights progress in bank recapitalisation, confirming that 16 banks have met regulatory requirements. Mediaplusng.com reports that the CBN Governor underscores the importance of evidence-based policy to maintain price stability and strengthen the resilience of the financial system.
On the global outlook, Governor Cardoso warns that trade tensions between the US and major partners may constrain growth, with global inflation expected to remain above pre-pandemic levels in the near term. This MPC meeting marks the last for 2025, setting
