The Central Bank of Nigeria (CBN) has decided to keep the country’s main interest rate at 27%. This decision was made by the Monetary Policy Committee (MPC) during its 303rd meeting held in Abuja on Tuesday.
CBN Governor Olayemi Cardoso, who announced the outcome, explained that the committee carefully studied the current state of the economy before choosing to maintain the rate. According to him, the MPC believes that keeping the interest rate unchanged will help Nigeria continue on the path of economic stability.
Cardoso also stated that all other major monetary tools will remain the same. These include:
Cash Reserve Ratio (CRR) for commercial banks, which stays at 45%
CRR for merchant banks, which remains 16%
75% CRR on public sector funds not kept under the Treasury Single Account (TSA)
Liquidity Ratio, which continues at 30%
The Standing Facilities Corridor, now set at +50/-450 basis points around the policy rate
He said the committee took these decisions because Nigeria has recorded seven straight months of declining inflation, a sign that earlier monetary tightening is beginning to work. Inflation, which had been a major concern for Nigerians and businesses, dropped to 16.05% in September 2025, showing the strongest improvement in months.
According to Cardoso, the CBN wants to make sure that the progress achieved so far is not lost. Keeping the interest rate steady, he explained, will help maintain confidence in the financial system, support the naira, and ensure that inflation continues to fall.
He added that the CBN will keep monitoring the economy closely and make further adjustments if needed to protect growth and stability.
