The Central Bank of Nigeria's Monetary Policy Committee voted to hold the monetary policy rate at 27.00% at its November 2025 meeting, keeping the headline rate unchanged while adjusting the Standing Facilities corridor. The corridor was reset to plus 50 basis points above the MPR on the lending side and minus 450 basis points below it on the deposit side, a reconfiguration that alters the effective range within which overnight interbank rates can move.
The decision to hold at 27.00% came as consumer price inflation fell. Nigeria's CPI inflation had declined to 16.05% by October 2025. Despite the improvement, the MPC judged that maintaining the current policy rate remained appropriate given the need to consolidate gains on inflation.
STANDING FACILITIES CORRIDOR
By setting the lending facility at MPR plus 50 basis points and the deposit facility at MPR minus 450 basis points, the CBN has created an asymmetric corridor around the policy rate.
The MPC's communication highlighted the progress made on inflation. However, the Committee noted that the level of inflation, while falling, remains high, reinforcing the case for maintaining the restrictive stance embedded in the 27.00% MPR.
DISINFLATION PROGRESS NOTED BUT RATE UNCHANGED
The CBN's tightening cycle carried the MPR to 27.50% before a 50 bp cut to 27.00% in September 2025. With inflation at 16.05% in October, the real policy rate is positive.
The Committee indicated it would continue to monitor the trajectory of inflation, the naira's performance, and broader macroeconomic conditions before considering any adjustment to the MPR itself.
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