By Oluwakemi Kindness
The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points, bringing it down to 26.50 percent from 27 percent.
The decision was announced on Tuesday during the 304th Monetary Policy Committee (MPC) meeting held in Abuja.
CBN Governor Olayemi Cardoso said the committee reached the decision unanimously.
According to him, “The committee decided to reduce the monetary policy rate by 50 basis points to 26.50 percent.”
Cardoso also disclosed that the liquidity ratio was retained at 30 percent, while the standing facilities corridor was adjusted to +50 to -450 basis points around the MPR.
The committee further maintained:
• Cash Reserve Ratio (CRR) at 45 percent for commercial banks
• CRR at 16 percent for merchant banks
• 75 percent CRR on non-TSA public sector deposits
The MPR serves as Nigeria’s benchmark interest rate and is used by the CBN to manage inflation, liquidity, and overall macroeconomic stability.
At its previous meeting in November, the MPC retained the MPR at 27 percent.
The last rate cut before today’s decision occurred in September last year, when the rate was reduced from 27 percent to 27.50 percent.
Meanwhile, the country’s interest rate eased slightly in January, dropping to 15.10 percent from 15.15 percent, according to the National Bureau of Statistics.
