Market News
CBN surprises markets by holding rates steady to sustain inflation gains - BUSINESSDAY
The Central Bank of Nigeria (CBN) on Tuesday surprised markets by keeping its benchmark interest rate, known as the Monetary Policy Rate (MPR), unchanged at 27 percent to sustain the progress made so far towards achieving low and stable inflation.
A Business Day poll of 15 economists had revealed expectations for a 100-basis point cut on the back of slowing inflation, which fell to 16.1 percent in October.
The MPC adjusted the corridor around the MPR at +50-450 basis points from +250/-250 basis points in September 2025.
The decision was announced by Olayemi Cardoso, CBN governor, after the conclusion of the two-day Monetary Policy Committee (MPC) meeting in Abuja.
The CBN also maintained key monetary tools, including the Cash Reserve Ratio at 45.00 percent for Deposit Money Banks and 16 percent for Merchant Banks, and left the Liquidity Ratio unchanged at 30.00 percent.
The CBN reduced the MPR to 27 percent in September 2025, marking a five-year period compared to September 2020, when it was lowered from 12.5 percent to 11.5 percent to support the economy during the COVID-19 pandemic.
