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The Central Bank of Nigeria (<a href="https://www.cbn.gov.ng/" target="_blank" rel="noopener noreferrer nofollow">CBN</a>) has retained the monetary policy rate (interest rate) at 27%. This comes amid its effort to maintain inflation and stabilise the foreign exchange market.&nbsp;
According to the CBN Governor, Olayemi Cardoso, in a press conference during Tuesday’s 303rd Monetary Policy Committee (MPC) meeting, the decision to retain the interest rate stems from its decision to maintain its tight monetary stance. Recall that the CBN in September cut the MPR from 27.5% to 27% for the first time since the post-COVID period.&nbsp;
Providing more explanation, Cardoso said that members of the committee are not yet convinced that economic conditions are stable enough to warrant another rate reduction.
“The Committee decided by a majority vote to maintain the monetary policy stance,” he said.
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 Central Bank Governor, Olayemi Cardoso
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The MPR serves as the baseline interest rate in an economy, as other rates are set relative to it. The CBN has also remained elevated to support its aggressive measures to curb rising prices and restore investor confidence.
While the interest rate was not expected to increase, a modest rate was expected amid the continuous drop in the inflation rate. Since the Cardoso leadership began its tightening policy, the decision to hold rates firm underscores the bank’s ongoing caution despite recent economic pressures.
Compared to last year, when both inflation and interest rates were high, the reverse has been the case this year, especially for the inflation rate. Recall that the inflation rate dropped for a seventh consecutive time to 16.05% in October 2025, from 18.02% in September and 20.12% in August.
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 <img loading="lazy" width="640" height="360" src="https://technext24.com/wp-content/uploads/2023/08/CBN-BDC.jpeg" alt="CBN still won't sell dollars to BDCs, issues new guidelines in a bid to reduce exchange rate">
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While the MPR was retained at 27%, the CBN adjusted the corridor around the MPR at +50-450% from +250/-250% in September 2025. The CBN also maintained key monetary tools, including the Cash Reserve Ratio at 45% for Deposit Money Banks and 16% for Merchant Banks. It left the Liquidity Ratio unchanged at 30%.
The interest rate was last reduced in September 2020, when it was lowered from 12.5% to 11.5% to support the economy during the COVID-19 pandemic.
Also Read: <a href="https://technext24.com/2025/09/23/cbn-cuts-interest-rate-to-27-fintechs/" rel="noopener noreferrer nofollow">CBN cuts interest rate to 27%; what it means for Nigerians and fintechs.</a>
<h4 id="retained-interest-rate-continued-effort-at-economic-recovery" class="wp-block-heading">Retained interest rate: continued effort at economic recovery&nbsp;</h4>
The CBN’s decision to retain the interest rate despite two drops in the inflation rate since the last MPC meeting shows the flexibility of the Nigerian economy. Recall that after it reduced the MPR to 27% in September, the inflation rate had reduced by 18.02% and 16.08% in the two successive months.&nbsp;
Again, the committee’s decision revealed CBN’s measured approach in handling Nigeria’s economic recovery.&nbsp;
For Nigerians, the retained interest rate poses a twist. While it shows an enabling environment for businesses to thrive amid high purchasing power, it also highlights the unpredictable nature of economic measures, as demonstrated by the MPC’s reactions.&nbsp;
<figure class="wp-block-image size-full">
 <img loading="lazy" width="800" height="400" src="https://technext24.com/wp-content/uploads/2023/02/Can-all-Nigerians-get-access-to-the-new-naira-note-before-Feb-10.png" alt="Can all Nigerians get access to the new naira note before Feb 10?">
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However, if the inflation rate continues at its current momentum, the interest rate might fall.&nbsp;

CBN retains interest rate at 27% amid push for economic recovery

Technext.ng

Other articles published on Nov 25, 2025

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