The Central Bank of Nigeria (CBN) on Tuesday reduced the benchmark interest rate from 27.5 percent to 27 percent, citing a sustained decline in inflation over the past five months.
CBN Governor, Olayemi Cardoso, announced the decision at a press briefing in Abuja following the two-day 302nd meeting of the Monetary Policy Committee (MPC).
Cardoso said the rate cut was unanimously agreed upon by MPC members to support economic activity while maintaining price stability.
In addition to the rate adjustment, the MPC raised the Cash Reserve Ratio (CRR) to 45 percent for Deposit Money Banks and 16 percent for Merchant Banks. The committee also adjusted the asymmetric corridor to +250/-250 basis points around the Monetary Policy Rate (MPR), while retaining the liquidity ratio at 30 percent.
The decision comes amid sustained calls from industrial stakeholders and manufacturers for a reduction in the MPR to ease borrowing costs and lower production expenses.
