302nd Monetary Policy Committee (MPC) Meeting: CBN Cuts Interest Rate to 27%
Oru Leonard
The Central Bank of Nigeria (CBN), has reduced the Monetary Policy Rate (MPR) by 50 basis points to 27.00% in a bid to support economic recovery efforts. This decision was made at the 302nd Monetary Policy Committee (MPC) meeting held on September 22-23, 2025.
Key Decisions include:
– Monetary Policy Rate (MPR): Reduced by 50 basis points to 27.00%
– Standing Facilities Corridor: Adjusted to 250/-250 basis points around the MPR
– Cash Reserve Ratio (CRR): Adjusted to 45% for commercial banks, while retaining 16% for merchant banks. A 75% CRR on non-Treasury Single Account (TSA) public sector deposits was introduced
– Liquidity Ratio: Remained unchanged at 30.00%
The CBN’s decision to lower the MPR was based on sustained disinflation over the past five months, projections of declining inflation for the rest of 2025, and the need to support economic recovery efforts. The MPC noted that the stability in the macroeconomic environment provided room for monetary policy to support economic growth.
On Economic Outlook the MPC disclosed that inflation is expected to continue declining due to previous rate hikes, foreign exchange market stability, and lower PMS prices. Again, there was Economic Growth as Nigeria’s GDP grew by 4.23% year-on-year in Q2 2025, driven by improved performance in the oil sector
In addition, Gross external reserves stood at $43.05 billion as of September 11, 2025, with an import cover of 8.28 months.
The next MPC meeting is scheduled for November 24-25, 2025, where further decisions on monetary policy will be made based on emerging economic data.
