The Central Bank of Nigeria (CBN) has trimmed its benchmark interest rate by 0.5 percentage point, taking the Monetary Policy Rate (MPR) down from 27 percent to 26.5 percent, according to an OBSERVERS TIMES flash.
Governor Olayemi Cardoso announced the move on Tuesday while addressing reporters after the 304th Monetary Policy Committee meeting in Abuja.
“The committee decided to reduce the monetary policy rate by 50 basis points to 26.5 percent,” Cardoso said.
He added that the cash-reserve ratios for deposit-money banks will stay at 45 percent; merchant banks will keep theirs at 16 percent; and the 75 percent floor on non-Treasury Single Account public-sector deposits remains unchanged.
Cardoso explained that members weighed the balance of risks and expect inflation to keep easing, thanks to earlier policy tightening and bigger food supplies. Year-on-year inflation has now slowed for 11 months straight, he noted.
Eleven committee members attended the meeting.
