The Central Bank of Nigeria cut the MPR to 27 percent, citing easing inflation and macroeconomic stability while warning of excess liquidity risks.
The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) from 27.5 percent to 27 percent following a sustained decline in inflation.
Governor Olayemi Cardoso announced the decision at a news conference on Tuesday after the 302nd meeting of the Monetary Policy Committee (MPC) in Abuja. He said all 12 committee members unanimously voted to cut the benchmark rate by 50 basis points.
“The committee decided to reduce the monetary policy rate (MPR) by 50 basis points to 27 percent,” Cardoso said.
The MPC also reduced the cash reserve ratio (CRR) of commercial banks from 50 percent to 45 percent, retained the liquidity ratio at 30 percent, and widened the asymmetric corridor around the MPR to +250/-250 basis points.
Cardoso explained that the easing move was driven by “sustained disinflation, improved output growth, stable exchange rate and robust external reserves.” Inflation eased to 20.33 percent in August, the steepest decline in five months.
He, however, warned of “excess liquidity building up in the banking system” and stressed the need for careful policy management.
The next MPC meeting is scheduled for November 24–25, 2025.