The Central Bank of Nigeria (CBN) has lowered the Monetary Policy Rate (MPR) by 50 basis points, reducing it from 27 percent to 26.50 percent.
The decision was announced at the conclusion of the bank’s 304th Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday.
CBN Governor, Olayemi Cardoso, disclosed that members of the committee unanimously agreed to the rate cut.
“The committee resolved to reduce the monetary policy rate by 50 basis points to 26.50 percent,” Cardoso stated.
He added that the liquidity ratio remains unchanged at 30 percent, while the standing facilities corridor has been adjusted to +50 and -450 basis points around the MPR.
The MPC also retained the Cash Reserve Ratio (CRR) at 45 percent for commercial banks and 16 percent for merchant banks. Additionally, the 75 percent CRR on non-TSA public sector deposits was maintained.
The MPR serves as the benchmark interest rate used by the apex bank to control inflation, ensure macroeconomic stability, and regulate liquidity in the financial system.
At its last meeting in November, the MPC had held the rate steady at 27 percent. The previous rate adjustment occurred in September last year.
Meanwhile, data from the National Bureau of Statistics shows that inflation eased slightly in January to 15.10 percent from 15.15 percent recorded earlier.
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