The Central Bank of Nigeria has reduced its Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27 per cent to 26.5 per cent.
The announcement was made on Tuesday in Abuja by the CBN Governor, Olayemi Cardoso, at the conclusion of the apex bank’s 304th Monetary Policy Committee (MPC) meeting.
Cardoso stated that the committee reached the decision after extensive deliberations on prevailing economic indicators and risks to the nation’s inflation outlook.
“The Committee decided to reduce the monetary policy rate by 50 basis points to 26.5 per cent,” he said.
Despite the rate cut, the MPC retained other key monetary parameters. The Cash Reserve Ratio (CRR) for deposit money banks remains at 45 per cent, while that of merchant banks stays at 16 per cent.
The liquidity ratio was also left unchanged, including the 75 per cent CRR applicable to non-Treasury Single Account public sector deposits.
According to the governor, the decision reflects growing confidence that inflationary pressures are gradually easing.
He noted that disinflation is expected to persist, supported by the cumulative impact of earlier monetary tightening measures and improvements in food supply.
Cardoso further disclosed that inflation has recorded a sustained year-on-year slowdown, marking the 11th consecutive month of decline.
A total of 11 members of the MPC were present at the meeting where the resolutions were reached.
