The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points, bringing it down from 27.5 percent in July to 27 percent.
The decision, announced on Tuesday, is part of the Monetary Policy Committee’s (MPC) ongoing efforts to stabilize the economy while managing inflation and liquidity.
The apex bank retained the asymmetric corridor around the MPR at +260 and -250 basis points, signaling a cautious approach to market volatility.
In addition, the CBN cut the cash reserve requirement (CRR) for commercial banks to 45 percent, while that of merchant banks remains unchanged at 16 percent.
The committee also introduced a 75 percent CRR on non-TSA public sector deposits, a move aimed at tightening controls over government-linked funds.
Meanwhile, the liquidity ratio for banks was left unchanged at 30 percent.
Analysts believe the decision reflects the CBN’s balancing act between stimulating growth and maintaining macroeconomic stability, especially as businesses and households continue to face pressure from high inflation and currency challenges.
More details are expected following the official release of the MPC communiqué.
The post BREAKING: CBN Cuts Interest Rate to 27 Per Cent first appeared on Diaspora Digital Media DDM.
