CBN reduces Monetary Policy Rate

The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27.5 percent to 27 percent.

Governor Olayemi Cardoso announced the decision on Tuesday after the Monetary Policy Committee (MPC) meeting in Abuja.

Cardoso said the Committee also agreed to adjust the standing facilities corridor around the MPR to plus or minus 250 basis points, increase the Cash Reserve Requirement (CRR) for commercial banks to 45 percent while leaving that of merchant banks at 16 percent, introduce a 75 percent CRR on non-Treasury Single Account (TSA) public sector deposits, and retain the Liquidity Ratio at 30 percent.

He explained that the rate cut was informed by five months of sustained disinflation, expectations of further easing of inflation through the rest of 2025, and the need to consolidate economic recovery efforts.

The corridor adjustment, he added, is aimed at boosting interbank market efficiency and strengthening monetary policy transmission.