- CBN Cuts Interest Rate to 27% as Inflation Declines for Fifth Month
- Cardoso said the rate adjustment was unanimously approved by committee members
- Nigeria’s economy expanded by 4.23 per cent in the second quarter of 2025
The Central Bank of Nigeria (CBN) has reduced its benchmark interest rate from 27.5 per cent to 27 per cent, marking the first cut in more than a year.
Eko Hot Blog reports that CBN Governor, Olayemi Cardoso, announced the decision at a press conference in Abuja on Tuesday following the 302nd meeting of the Monetary Policy Committee (MPC).
EDITOR’S PICK
- Details Of Fubara’s Meeting With Tinubu In Aso Villa Emerge
- Tambuwal Politically Retired, Has No Future Plans – APC
- Dembele Wins 2025 Ballon d’Or After Historic Season With PSG
Cardoso said the rate adjustment was unanimously approved by committee members in response to Nigeria’s inflation, which has eased for five consecutive months, dropping to 21.12 per cent in August.
Alongside the rate cut, the MPC also raised the Cash Reserve Ratio (CRR) to 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks. The asymmetric corridor around the Monetary Policy Rate (MPR) was adjusted to +250/-250 basis points, while the Liquidity Ratio (LR) was retained at 30 per cent.
This marks the first CBN-initiated interest rate reduction since May 2023, when the MPR was lowered from 18 per cent to 17.5 per cent. The move follows persistent calls from manufacturers and industrial stakeholders for monetary easing to ease production costs.
Nigeria’s economy expanded by 4.23 per cent in the second quarter of 2025, compared to 3.13 per cent in the previous quarter. Growth was recorded across agriculture, services, industries, and the oil sector, while manufacturing, trade, ICT, and motor assembly contracted.
Despite the latest adjustment, Nigeria still holds one of the highest interest rate and inflation levels on the continent. Ghana recently reduced its rate by 350 basis points to 21.5 per cent, with inflation at 11.5 per cent, while South Africa’s interest rate stands at 7 per cent, with inflation at 3.3 per cent.
