The Central Bank of Nigeria (CBN) has announced a cut in its benchmark interest rate, the Monetary Policy Rate (MPR), lowering it from 27.5 percent to 27 percent.
Governor Olayemi Cardoso disclosed the decision on Tuesday during the 302nd meeting of the Monetary Policy Committee (MPC).
The MPC’s unanimous resolution also included a reduction in the Cash Reserve Ratio (CRR) for Deposit Money Banks to 45 percent, while the CRR for Merchant Banks was retained at 16 percent.
Liquidity ratio maintained at 30%
Despite the adjustments, the Liquidity Ratio was left unchanged at 30 percent.
In another move, the MPC fine-tuned the asymmetric corridor around the MPR to +250/-250 basis points.
The bank said this is aimed at achieving a delicate balance between stimulating economic growth and curbing inflation.
“These measures are designed to ease monetary conditions in Africa’s largest economy,” Cardoso stated.
Inflation and currency pressures driving policy shift
Nigeria has been grappling with soaring inflation and persistent pressure on the Naira.
Policymakers at the apex bank say the latest policy shift is part of efforts to navigate these challenges without stalling growth.
Cardoso stressed: “Our decision reflects the need to provide some relief to the economy while remaining vigilant on inflationary trends.”
