The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reduced the benchmark interest rate by 50 basis points, lowering it from 27.5% to 27%.
The announcement was made by the CBN Governor, Olayemi Cardoso, during a media briefing on the outcomes of the 302nd MPC meeting held in Abuja on Tuesday.
In addition to the rate cut, Cardoso revealed that the cash reserve requirement (CRR) for commercial banks has been adjusted to 45%, while the CRR for merchant banks remains at 16%.
The bank also introduced a 75% cash reserve ratio on non-Treasury Single Account (non-TSA) public sector deposits.
Governor Cardoso explained that the MPC’s decisions were based on a recent moderation in inflation, reflecting improvements in key economic indicators.
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