UPDATED: CBN Cuts Interest Rate to 27% in Policy Adjustment

September 23, (THEWILL) — The Central Bank of Nigeria’s Monetary Policy Committee (MPC) has reduced the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27.5% to 27%.

The announcement was made by CBN Governor, Olayemi Cardoso, during a press briefing on Tuesday in Abuja, following the conclusion of the Committee’s 302nd meeting.

Cardoso explained that the MPC also approved other adjustments, including a cut in the Cash Reserve Ratio (CRR) to 45% for commercial banks, while retaining it at 16% for merchant banks. In addition, a 75% CRR was introduced for non-TSA public sector deposits.

He said the Liquidity Ratio would be retained at 30%, stressing that the policy shift is aimed at strengthening liquidity management and sending clearer signals to the financial markets.

According to the CBN Governor, the decision reflects a cautious attempt to ease monetary conditions in response to moderating inflation and improving macroeconomic indicators.

Nigeria’s headline inflation rate eased to 20.12% in August 2025, down from 21.88% recorded in July.

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