The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27 per cent to 26.5 per cent.
The decision was announced by Olayemi Cardoso, the CBN Governor, at the end of the 304th Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday.
According to Cardoso, the Committee resolved to:
- Reduce the MPR by 50 basis points to 26.5 per cent
- Retain the Cash Reserve Ratio (CRR) for:
- Deposit Money Banks at 45 per cent
- Merchant Banks at 16 per cent
- Non-TSA public sector deposits at 75 per cent
Cardoso said the decision followed a balanced assessment of economic risks and positive inflation trends.
He noted that inflation has recorded 11 consecutive months of year-on-year decline, suggesting that earlier monetary tightening measures are yielding results.
The Committee also cited:
- Continued disinflationary momentum
- Improved food supply conditions
- The cumulative impact of previous monetary policy actions
All 11 MPC members were present at the meeting.
The rate cut signals a cautious shift toward easing after an extended period of aggressive tightening aimed at curbing inflation. By maintaining high reserve requirements while slightly lowering the benchmark rate, the CBN appears to be balancing inflation control with the need to support economic growth.
The move will likely influence borrowing costs, lending conditions, and overall liquidity in the banking system in the coming months.
