{
  "id": 9171280,
  "title": "BREAKING: CBN says MPR reset due to disconnect with market rates",
  "url": "https://urgent.news/2026/09/22/breaking-cbn-says-mpr-reset-due-to-disconnect-with-market-rates",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-22T17:41:50.000Z",
  "source": {
    "name": "Nairametrics",
    "slug": "nairametrics",
    "url": "https://nairametrics.com/2026/09/22/cbn-says-mpr-reset-due-to-disconnect-with-market-rates/"
  },
  "original_language": "en",
  "account": "The Central Bank of Nigeria (CBN) has explained its recent \"reset\" of the Monetary Policy Rate (MPR) from 26.5% to 23%, stating that the previous benchmark had become disconnected from actual market rates. This decision, made at the committee's 307th meeting in Abuja, aims to restore the MPR as an effective signal for interest rates in the economy, rather than a simple monetary policy easing. The CBN identified weak monetary policy transmission as the main issue behind the reset, noting that while the official MPR remained at 26.5%, the interbank rate stood at around 22%, aligning closely with the Standing Deposit Facility (SDF) rate. Consequently, the MPR effectively became the de jure policy rate, while the SDF became the de facto rate used by banks. To address this divergence, the MPC reset the MPR to 23% and recalibrated the Standing Facilities Corridor to a range of +50/-300 basis points around the MPR, while maintaining current Cash Reserve Requirement levels. The CBN believes this realignment will strengthen monetary policy transmission and reestablish the MPR as the primary monetary policy signal. This reset is part of broader financial-market reforms and is supported by improved macroeconomic fundamentals in Nigeria, including a US$3.51 billion Balance of Payments surplus and US$55.25 billion in external reserves. The CBN also cited enhanced foreign-exchange market stability, banking-sector recapitalization, and stronger monetary-fiscal coordination as contributing factors to the reset. Despite the 350 basis-point reduction in headline MPR, the CBN emphasizes that this does not signify a shift to accommodative monetary policy. Instead, they argue that financial markets have already been operating around the SDF rate for some time, so the reset primarily brings the official policy framework closer to existing market conditions. The apex bank maintains that real monetary conditions remain restrictive, with the real policy rate increasing to 11.11% in August 2026 from 11.07% in July, providing an important buffer for inflation expectations. Thus, the move to 23% is seen primarily as a recalibration of the monetary policy framework to reflect market realities, while retaining sufficient monetary restraint to anchor inflation expectations and sustain the disinflation process.",
  "summary": "The Central Bank of Nigeria (CBN) has explained why it “reset” the Monetary Policy Rate (MPR) from 26.5% to 23%, saying the previous benchmark had become disconnected from the rates actually used in the financial markets. The post BREAKING: CBN says MPR reset due to disconnect with market rates appeared first on Nairametrics .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}