-
CBN reduces interest rate (MPR) to 26.5% from 27% after Monetary Policy Committee meeting.
-
Decision based on declining inflation and improved food supply outlook.
- Cash reserve ratios for banks and public sector deposits remain unchanged
The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points from 27 percent to 26.5 percent.
CBN Governor Olayemi Cardoso announced the decision while addressing journalists after the 304th Monetary Policy Committee meeting held in Abuja on Tuesday.
READ ALSO: Court Freezes Copyright Levies, Bars CBN, Banks from Paying MCSN
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
Cardoso said the Committee agreed to lower the benchmark interest rate following a balanced assessment of economic risks, noting that inflation is expected to continue declining due to earlier policy measures and improved food supply.
He added that inflation has recorded a year-on-year slowdown for the 11th consecutive period, influencing the Committee’s decision.
The Committee also retained the Cash Reserve Requirement at 45 percent for deposit money banks and 16 percent for merchant banks, while maintaining 75 percent for non-TSA public sector deposits.
According to the CBN governor, 11 members attended the meeting where the decision was reached.
