The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has announced a fresh cut in its benchmark interest rate, reducing it from 27.5 percent to 27 percent.
The move marks the first rate cut since the current tightening cycle began, signaling a potential shift in policy direction as inflationary pressures begin to ease.
According to the apex bank, the adjustment represents a 50-basis-point reduction and ends a streak of paused rates that had left financial markets uncertain about the regulator’s next steps.
The announcement was made following the 302nd meeting of the Monetary Policy Committee, held in Abuja on Tuesday.
CBN Governor Olayemi Cardoso, who addressed journalists after the meeting, explained that the decision was informed by encouraging signs of slowing inflation.
“The Committee resolved to lower the monetary policy rate to 27 per cent, reflecting our confidence in the steady disinflation trend seen in recent months,” Cardoso stated.
The CBN adjusted the asymmetric corridor around the MPR to +250/-250 basis points, lowered the Cash Reserve Ratio (CRR) for Deposit Money Banks from 50 percent to 45 percent, retained the CRR for Merchant Banks at 16 percent, and maintained the Liquidity Ratio at 30 percent.
In addition, the apex bank introduced a 75 percent CRR on non-public sector deposits to strengthen liquidity management.
