Central Bank of Nigeria, CBN has cut the monetary policy rate, MPR by 50 basis point to 26.50% the second rate cut under Governor Yemi Cardoso.
CBN Monetary Policy Committee, MPC voted to ease monetary policy, reducing the Monetary Policy Rate by 50 basis .
The decision was taken at the 304th meeting of the Committee, which retained the Cash Reserve Ratio, CRR at 45% for deposit money banks and 16% for merchant banks.
The Committee said the rate cut reflects sustained deceleration in inflation, marking the 11th consecutive month of decline, alongside relative stability in the foreign exchange market and robust capital inflows.
Members also cited improvements in Nigeria’s external sector, including stronger reserves which have bolstered investor confidence. The MPC further acknowledged stability in energy costs and staple food prices as supportive factors.
While welcoming Executive Order 09 and its potential fiscal implications, the Committee expressed confidence that a moderate easing stance is appropriate at this time.
The MPC also disclosed that 20 banks have met the recapitalisation requirements, signaling continued resilience in the financial system.
The 50 basis point reduction marks the first rate cut of the year, signaling a cautious shift toward monetary easing amid improving macroeconomic conditions.
(Editor: Terverr Tyav)
