The Central Bank of Nigeria (CBN) has lowered the Monetary Policy Rate (MPR) by 50 basis points, reducing it from 27 percent to 26.5 percent.
CBN Governor Olayemi Cardoso announced the decision while addressing journalists at the end of the 304th Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday.
According to him, “The Committee resolved to reduce the monetary policy rate by 50 basis points to 26.5 percent.”
The Committee also decided to retain the Cash Reserve Ratio (CRR) at 45 percent for deposit money banks and 16 percent for merchant banks. In addition, the liquidity ratio for non-TSA public sector deposits remains at 75 percent.
Cardoso explained that the decision was based on a balanced assessment of risks to the economic outlook, indicating that inflation is expected to continue easing due to earlier monetary tightening measures and improved food supply.
He further noted that inflation has recorded its 11th consecutive year-on-year decline, reflecting sustained moderation in price pressures.
The CBN governor added that all 11 members of the Monetary Policy Committee were present at the meeting.
