By Deborah Nnamdi
The Central Bank of Nigeria has reduced the Monetary Policy Rate (MPR) by 50 basis points to 26.5 per cent, signaling a shift in its monetary stance.
Governor Olayemi Cardoso announced the decision on Tuesday at the end of the Monetary Policy Committee (MPC) meeting in Abuja.
In addition to lowering the benchmark interest rate, the committee retained the standing facilities corridor at +50 to -450 basis points around the MPR.
The apex bank also left the Cash Reserve Requirements unchanged, maintaining 45 per cent for deposit money banks, 16 per cent for merchant banks, and 75 per cent for non-Treasury Single Account public sector deposits.
The decision marks the first rate cut in recent months, as the MPC balances efforts to manage inflationary pressures with the need to support economic growth.
Further details of the committee’s deliberations are expected to be released in the official communiqué.
