The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR), also known as the benchmark interest rate, from 27% to 26.50%. The decision was announced after the Bank’s 304th Monetary Policy Committee (MPC) meeting in Abuja.
CBN Governor Olayemi Cardoso said the committee unanimously agreed to lower the rate by 50 basis points, as part of efforts to support economic stability while keeping inflation under control.
The committee also left other key policy measures unchanged. The Cash Reserve Ratio (CRR) remains at 45% for commercial banks and 16% for merchant banks, while the liquidity ratio stays at 30%.
In addition, the CBN retained the 75% CRR on non-TSA public sector deposits and adjusted the standing lending and deposit facilities corridor to +50/-450 basis points around the MPR.
The Monetary Policy Rate is the CBN’s main tool for controlling inflation, managing liquidity in the banking system, and promoting overall macroeconomic stability.
The decision comes as Nigeria’s inflation rate eased slightly to 15.10% in January, down from 15.15% in the previous month, according to the National Bureau of Statistics.
