September 24, 2025/CSL Research
- In line with our expectations, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) decided to ease the Monetary Policy Rate (MPR) by 50 basis points (bps) to 27.0%.
- MPC prioritises liquidity management and credit expansion with measures including a narrower asymmetric corridor, a reduced Cash Reserve Ratio (CRR) for deposit banks, and the introduction of a CRR on public sector deposits.
- We see room for another 100bps rate cut at the November meeting on account of the expected continuation of the disinflationary trend over the coming months.
As anticipated (see CSL Daily Note: “Central Bank poised to ease the benchmark policy rate”, 22 September), the MPC of the CBN voted to ease the policy rate, lowering the MPR by 50bps to 27.0% and narrowing the asymmetric corridor around the MPR to +250/-250bps from +500bps/-100bps. In addition, the MPC reduced the CRR for deposit money banks to 45.0% from 50.0%, while leaving the CRR for merchant banks unchanged at 16.0%. Notably, a new 75.0% CRR was introduced on non-Treasury Single Account (TSA) public sector deposits, a move aimed at enhancing liquidity management within the financial system. Meanwhile, the liquidity ratio was maintained at 30.0%.
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CSL Macro Report – September MPC decision.pdf
