By Naija247news / Kadiri Abdulrahman
Abuja, Nov. 25, 2025 (Naija247news/NAN) – Financial expert Prof. Uche Uwaleke has commended the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) for retaining the Monetary Policy Rate (MPR) at 27 per cent, describing the decision as timely and strategic for economic stability.
Uwaleke, President of the Capital Market Academics of Nigeria, made the remarks in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja, following the MPC’s 303rd meeting.
The CBN Governor, Yemi Cardoso, announced that in addition to retaining the MPR, the committee also kept the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks and 16 per cent for merchant banks, and maintained 75 per cent CRR on non-TSA public sector deposits. The Liquidity Ratio was also held at 30 per cent, while the Standing Facilities Corridor was adjusted to +50/-450 basis points around the MPR.
Uwaleke described the measures as a welcome development, noting that the adjustment of the standing facility corridor effectively lowers the ceiling for CBN lending while widening the deposit corridor. He said this signaled cautious operational easing despite the headline MPR remaining elevated to manage inflation and foreign exchange pressures.
“The CBN’s lending window is now cheaper, meaning banks face lower marginal funding costs, which should reduce interbank volatility and encourage lending to SMEs,” he said.
The financial expert, however, cautioned that the real test lies in whether banks translate the corridor adjustment into lower lending rates for businesses and households.
He added that given fiscal pressures from deficit financing, which compound inflation risk, and the need to support economic growth, the MPC’s decision was appropriate and timely.
(NAN)
