Just in: CBN arc to pressure, reduce interest rates to 27%, CRR to 45%

The Monetary Policy Committee of the Nigerian Central Bank (MPC) has reduced the interest rate by 50 basis points, from 27.5 percent in July to 27 percent.

The Committee also reduces the cash reserve requirements to 45 percent for commercial banks and maintains a merchant bank by 16 percent.

This decision follows the constant pressure of critical stakeholders such as the Promotion Center for Private Companies (CPPE), which has encouraged cutting interest rates and cash reserve ratios (CRR).

At the end of the 2-302 meeting of the committee in Abuja on Tuesday, September 23, 2025, 12 committee members were chosen to cut interest rates and CRR.

Asymmetrical corridors around the MPR are maintained at +260 and -250 basis points, provide a framework for liquidity management and signify the CBN -Heartered approach to market volatility.

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CBN Governor, Dr. Olayemi Cardoso, who gave direction to journalists after the meeting, said the committee’s decision to reduce the level of monetary policy was based on sustainable desins recorded in the last five months, the projection of inflation decline for the remaining 2025, and the need to support economic inflation records.

The committee has also introduced 75 percent of cash reserves in non-TSA public sector deposits.

Meanwhile, the liquidity ratio is left unchanged at 30 percent.

By: Babajide Okeowo