The Central Bank of Nigeria has decided to keep its benchmark interest rate unchanged at 27 percent. The move continues the bank's tight monetary policy as it works to control inflation and stabilize the economy .
The Monetary Policy Committee announced its decision on Tuesday after a two-day meeting in Abuja. This was the committee's 303rd gathering. Governor Olayemi Cardoso said the choice to hold the rate received strong support from most committee members . The decision marks a pause after the bank cut rates by 50 basis points in September. That September reduction was the first rate cut since 2020 .
The committee also decided to keep other key banking requirements steady. The Cash Reserve Ratio for commercial banks stays at 45 percent. The ratio for merchant banks remains at 16 percent. The Liquidity Ratio was left unchanged at 30 percent .
One significant change came to the Standing Facilities Corridor. The committee adjusted it to +50/-450 basis points around the Monetary Policy Rate. This narrows the previous corridor of +250/-250 basis points set in September . This technical adjustment affects how the CBN manages overnight lending and borrowing activities.
The CBN's decision shows its focus on bringing down inflation despite recent improvements. Governor Cardoso acknowledged that current monetary conditions are starting to show positive results. He pointed to the gradual slowdown in headline inflation and better foreign exchange market liquidity as signs that the bank's tight policy is working .
New data from the National Bureau of Statistics shows inflation eased to 16.05 percent in October. This is down from 18.02 percent in September. Food inflation also dropped significantly to 13.12 percent year-on-year . Even with these improvements, inflation remains far above the CBN's target. The bank believes keeping rates high is necessary to fully control rising prices.
The committee said it welcomed the slowing inflation rate. It marked the seventh straight month of decline. Members attributed this positive trend to several factors. These include sustained monetary policy tightening, a stable exchange rate, and improved capital flows . Stability in fuel prices and better food supplies have also helped ease inflation pressures.
The CBN also noted progress in the banking sector's recapitalization process. Governor Cardoso confirmed that 16 banks have now met the revised capital requirements . This strengthening of the banking system supports overall financial stability.
Looking abroad, the committee recognized that global trade tensions could affect economic growth. Relations between the United States and its key trading partners remain challenging. The CBN expects worldwide inflation to stay above pre-pandemic levels in the near term .
The bank's decision to hold rates steady comes despite some expectations for a cut. A Reuters poll of economists had predicted a one percentage point reduction . The CBN chose a more cautious path, prioritizing the fight against inflation.
Businesses and borrowers will continue to face high lending costs with the rate unchanged. The CBN acknowledges this burden but insists that monetary discipline is needed for long-term stability . The policy is also meant to support the naira's stability in foreign exchange markets.
With the next MPC meeting scheduled for February 2026, the bank will have several more months to observe economic trends . Officials hope inflation will continue to slow enough to allow for future rate cuts. For now, the CBN remains committed to evidence-based policy decisions aimed at protecting price stability and building a stronger financial system .