UPDATED: CBN Cuts Interest Rate By 50 Basis Points To 27%
The Central Bank of Nigeria (CBN) has reduced its Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27.5% in July to 27%.
The decision was reached at the 302nd meeting of the Monetary Policy Committee (MPC), held on September 22–23, 2025, where all 12 members voted in favour of the cut.
The asymmetric corridor around the MPR was retained at +260 and -250 basis points, signaling the Bank’s cautious stance on market volatility.
CBN Governor Olayemi Cardoso explained that the decision was informed by sustained disinflation over the last five months, declining inflation projections for the remainder of 2025, and the need to support economic growth.
In addition, the MPC reduced the cash reserve requirement for commercial banks to 45% while retaining that of merchant banks at 16%. A 75% cash reserve requirement was also introduced on non-TSA public sector deposits to strengthen liquidity management.
The liquidity ratio, however, remains unchanged at 30%.
Macroeconomic Outlook
The MPC expressed confidence in Nigeria’s improving macroeconomic stability, citing:
-
Sustained disinflation momentum, particularly in August 2025—the strongest in five months.
-
Improved GDP growth, with Q2 2025 figures showing 4.23% expansion compared to 3.48% in Q2 2024 (NBS data).
-
Stable exchange rates, stronger external reserves, and increased crude oil output.
-
Moderation in fuel prices and higher capital inflows.
Despite progress, the Committee warned of risks from excess liquidity in the banking system, largely driven by increased fiscal releases. To address this, the MPC widened the standing facilities corridor to encourage stronger interbank transactions and stabilize the money market.
The CBN said it would continue to balance inflation control with policies that support sustainable economic recovery.
Categories
- World Affairs
- News
- Politics
- Entertainment
- People & Nation
- Education
- Tech & Innovation
- Security & Conflicts
- Business & Economy
- Opinion & Analysis
- Health & Wellness
- Education & Opportunities
- Science & Environment
- Lifestyle & How-To
- History & Heritage
- Art
- Causes
- Crafts
- Dance
- Drinks
- Film
- Fitness
- Food
- Games
- Gardening
- Health
- Home
- Literature
- Music
- Networking
- Other
- Party
- Religion
- Shopping
- Sports
- Theater
- Wellness
Read More
The Federal Government has launched an investigation into a viral video that appears to show road accident victims being neglected at the Emergency Unit of the Federal Medical Centre (FMC), Jabi, Abuja. The viral video recorded by a Samaritan claimed he had transported the injured victims to the hospital after coming across the scene of a road accident. In the footage, he alleged that medical...
Fifteen domestic workers accused of stealing jewellery belonging to former Nigerian First Lady, Patience Jonathan, will return to the Bayelsa State High Court on Thursday and Friday to continue their defence in a case that has dragged on since 2019. The defendants have been detained for six years at the Okaka Correctional Centre in Yenagoa without a single conviction. Their arrest followed...
Building a criminal empire in GTA 6 requires more than just brute force and fast driving. Success comes from smart planning, efficient money management, and mastering the street-level dynamics of the game. Whether you’re a newcomer or a seasoned player, these 10 street-smart strategies will help you establish a powerful foothold and grow your empire steadily. Diversify Your Income...
Evangelist Helen Akpabio has stirred debate in Christian circles after publicly condemning the phrase “Happy Birthday,” claiming it originates from the devil. In a recent message, Akpabio urged Christians to abandon the popular greeting, insisting it has no place in the life of a true believer. According to her, using “Happy Birthday” aligns with worldly traditions that...
Hakeem Baba-Ahmed, a former political adviser to President Bola Tinubu and ex-spokesperson of the Northern Elders Forum (NEF), has sharply criticised the Tinubu administration, saying it has failed to enhance both the quality of life for Nigerians and the standard of governance. Speaking on Channels Television’s Political Paradigm on Tuesday, Baba-Ahmed said the administration had not met...
