CBN cuts interest rate to 26.5%

The Central Bank of Nigeria has reduced the Monetary Policy Rate (MPR) by 50 basis points from 27 percent to 26.5 percent following the conclusion of its 304th Monetary Policy Committee meeting in Abuja.

The Governor of the apex bank, Olayemi Cardoso, disclosed this while briefing journalists on Tuesday, noting that the committee reached the decision after assessing current economic conditions.

Cardoso said the committee retained the Cash Reserve Requirement at 45 percent for deposit money banks, 16 percent for merchant banks, and 75 percent for non-TSA public sector deposits.

According to him, the decision to reduce the interest rate was based on a balanced evaluation of economic risks and signs that inflation is gradually easing due to previous monetary policies and improved food supply.

He added that inflation has recorded its 11th consecutive year-on-year decline, indicating a sustained slowdown in price increases.

The CBN governor also noted that 11 members of the Monetary Policy Committee attended the meeting.