The monetary policy committee of the Central Bank of Nigeria has kept the monetary policy rate unchanged at 27 percent.
Olayemi Cardoso, governor of the apex bank, announced the decision on Tuesday at a news conference marking the end of the committee’s 303rd meeting in Abuja.
The benchmark rate, which serves as the anchor for all other interest rates in the economy, has now been held for the fourth consecutive time — following similar decisions in February, May and July.
The latest hold comes as headline inflation eased to 16.05 percent in October 2025.
Cardoso said the committee voted to maintain its policy stance while adjusting the asymmetric corridor to +50 and -450 basis points around the MPR. He added that the cash reserve ratio remains 45 percent for deposit money banks, 16 percent for merchant banks, and 75 percent for public-sector deposits outside the treasury single account. The liquidity ratio was also left at 30 percent.
According to him, the committee took the decision to “sustain the progress made so far towards achieving low and stable inflation”.
“The MPC reaffirmed its commitment to a data driven assessment of developments and outlook to guide future policy decisions,” he said.
He noted that headline inflation has slowed for seven straight months, attributing the development to “sustained monetary policy tightening, stable exchange rate, capital flows, and surplus current account balance”.
The CBN governor added that relative stability in petrol prices and improved food supply also supported the pace of disinflation.
‘HEADLINE INFLATION REMAINS HIGH AT DOUBLE-DIGIT’
Despite recent improvements, Cardoso cautioned that inflation is still elevated.
“The committee was therefore of the view that the said steady deceleration in inflation across the three measures — headline, core, and food in October 2025 — suggests that the large impact of previous tight policy measures is expected to continue in the near term,” he said.
“Thus, maintaining the current stance of policy, amidst lingering global uncertainties, would allow the effect of previous policy rate hikes to sufficiently transmit to the real economy and further reduce prices.
“Members noted that the robust performance of the external sector, evidenced by the surplus current account and steady accretion to reserves, which have contributed to stability in the exchange rate and moderation in inflation.”
Cardoso later commended the joint efforts of fiscal and monetary authorities, saying the cooperation helped secure recent upgrades to Nigeria’s sovereign credit rating and the country’s removal from the FATF grey list. He said committee members believe these gains will strengthen investor confidence and support capital inflows.
