BREAKING: CBN Slashes Monetary Policy Rate to 27%

Published on September 23, 2025

The Central Bank of Nigeria (CBN) has announced a reduction in the Monetary Policy Rate (MPR), cutting it from 27.5% to 27%.

Governor of the apex bank, Olayemi Cardoso, disclosed the decision on Tuesday in Abuja during a press briefing at the end of the Monetary Policy Committee (MPC) meeting.

According to him, the committee voted to:

Reduce 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%.

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Cardoso explained that the move was informed by sustained disinflation recorded over the past five months, projected inflation declines through the rest of 2025, and the need to support economic recovery.

He further noted that the adjustment to the standing facilities corridor was aimed at improving interbank market efficiency and enhancing the transmission of monetary policy decisions across the financial system.

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