The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) eventually cut benchmark interest rate at its September 2025 meeting, after holding rates constant since the last hike in November 2024. The 50bps cut brings the Monetary Policy Rate (MPR) to 27.00% following the consistent disinflationary trend, with headline inflation at 20.12% as of August 2025 (vs 34.80% in December 2024), stability in the foreign exchange market, current account surplus and rising external reserves. 

Going forward, we envisage a mixed to bullish undertone in the fixed income market in October 2025 amidst ample system liquidity, further moderation in inflation, and expectation of another interest rate cut by the MPC later in the year. Although we expect proceedings in the primary market to be influenced by the DMO’s borrowing appetite and subscription levels, we opine that the direction of stop rates is likely tilted to the downside given strong liquidity conditions.

Kindly find HERE, the full report, covering our analysis and considerations.