CBN Releases 4 Key Monetary Policy Reviews (MPR) Decisions

The Central Bank of Nigeria (CBN) has risen from a meeting of its Monetary Policy Committee (MPC) announcing 4 key decisions.

These include slashing the country’s benchmark interest rate to 27.00 per cent, however leaving the Liquidity Ratio unchanged at 30.00 per cent.

This is the first time in the year that the apex bank would be cutting the interest rate also known as the Monetary Policy Rate,

These changes were major outcomes of the 302nd MPC meeting held on September 22 and 23, at which all 12 members of the committee were in attendance.

CBN Governor Olayemi Cardoso who announced the decision at a press briefing on Tuesday in Abuja   said the committee also adjusted the to +250/-250 basis points, raising the Cash Reserve Requirement for commercial banks to 45 per cent while retaining that of merchant banks at 16 per cent.

It also introduced a 75 per cent Currency Reserve Ration (CRR) on non-TSA public sector deposits

The Committee took other decisions as follows:

1. Reduced the Monetary Policy Rate by 50 basis points to 27.00 per cent.
2. Adjusted the Standing Facilities corridor around the MPR to +250/-250 basis points.
3. Adjusted the CRR for commercial banks to 45 per cent while retaining that of merchant banks at 16 per cent. Introduce a 75 per cent CRR on non-TSA public sector deposits.
4. Kept the Liquidity Ratio unchanged at 30.00 per cent.

READ ALSO: Financial Crimes: CBN Launches New Counter Measures

READ ALSO: Here Are The Items Driving Inflation In Nigeria -Central Bank

Cardoso said the rate cut was justified by “sustained disinflation recorded in the past five months, projections of declining inflation for the rest of 2025, and the need to support economic recovery efforts.”

According to him, the committee noted that headline inflation moderated to 20.12 per cent in August from 21.88 per cent in July, while food inflation dropped to 21.87 per cent from 22.74 per cent.

Also, core inflation eased to 20.33 per cent from 21.33 per cent over the same period. Month-on-month, inflation slowed sharply to 0.74 per cent in August compared with 1.99 per cent in July.