JUST IN: CBN bows to pressure, reduces interest rate to 27%, CRR to 45%

The Central Bank of Nigeria’s Monetary Policy Committee (MPC) has reduced the interest rate by 50 basis points, from 27.5 per cent in July to 27 per cent.

The committee also reduced the cash reserve requirement to 45 per cent for commercial banks and retained that of merchant banks at 16 per cent.

This decision followed the constant pressure from critical stakeholders like the Centre for the Promotion of Private Enterprise (CPPE), who have been pushing for an interest rate and Cash Reserve Ratio (CRR) cut.

At the end of the 2-day 302nd meeting of the committee in Abuja on Tuesday, September 23, 2025, the 12 members of the Committee elected to cut the interest rate and CRR.

The asymmetric corridor around the MPR was retained at +260 and -250 basis points, providing a framework for liquidity management and signaling the CBN’s cautious approach toward market volatility.

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CBN Governor, Dr. Olayemi Cardoso, who briefed journalists after the meeting, said the committee’s decision to lower the monetary policy rate was predicated on the sustained disinflation recorded in the past five months, projections of declining inflation for the rest of 2025, and the need to support economic inflation records.

The Committee has also introduced a 75 per cent cash reserve requirement on non-TSA public sector deposits.

Meanwhile, the liquidity ratio has been left unchanged at 30 per cent.

By: Babajide Okeowo

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