The Central Bank of Nigeria (CBN) has lowered its benchmark interest rate to 26.5%, signaling a cautious shift from its tightening cycle.
The decision, announced Tuesday by Governor Olayemi Cardoso after the 304th Monetary Policy Committee (MPC) meeting, reduces the Monetary Policy Rate (MPR) from 27%.
This marks the second cut in five months, reflecting confidence that inflationary pressures are easing.
“The Committee’s decision was based on a balanced evaluation of risks to the outlook, which suggests that the ongoing disinflation path will continue,” Cardoso said.
The MPC noted improved exchange rate stability and signs of slowing inflation. While easing credit conditions, the bank retained key liquidity controls.
The Cash Reserve Requirement remains at 45% for commercial banks and 16% for merchant banks. The Standing Facility Corridor was adjusted to +50 and -450 basis points around the new rate.
Cardoso confirmed that 20 banks have met recapitalisation requirements, reinforcing confidence in the financial sector.
Policymakers say the decision balances inflation control with access to funding for businesses and households.
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