The Monetary Policy Committee of the Central Bank of Nigeria voted to hold the benchmark interest rate steady. The Monetary Policy Rate remains at 23 per cent. The decision was taken at the 308th MPC meeting. The committee cited sustained month-on-month declines in headline inflation. The rate was cut by 350 basis points in September, from 26.5 per cent to 23 per cent.
The CBN raised rates aggressively in 2024 and 2025 to fight inflation. The MPR peaked at 27.5 per cent in 2024. The goal was to curb inflation, which had reached 33.2 per cent. High rates attracted portfolio inflows. They also made borrowing expensive. Businesses complained. Manufacturers warned of layoffs. The CBN cut rates in September 2026. Inflation had fallen to 15.39 per cent in August and 14.63 per cent in September. The committee is now pausing to assess the impact.
The committee said inflation is declining. It said the naira is stable. It said reserves are adequate. It decided to hold rates to monitor the effects of the September cut. The decision means borrowing costs remain high. Businesses will continue to face expensive credit. Consumers will continue to face high interest on loans. The CBN said it will adjust rates if conditions change.
The hold is a cautious move. The CBN wants to avoid reigniting inflation. It also wants to support growth. The balance is delicate. The committee will meet again in November. The decision will depend on the data.
Winners: The CBN, which shows caution. Bondholders, who gain high yields. Foreign investors, who gain returns. The naira, which gains stability.
Losers: Borrowers, who face high rates. Businesses, which face expensive credit. Consumers, who face high loan costs. The economy, which loses growth. Critics who wanted a deeper cut.
Bottom Line: The CBN held rates at 23 per cent. Inflation is falling. The bank is cautious. Borrowing remains expensive. The next move depends on the data.