The Central Bank of Nigeria (CBN) on Tuesday reduced its benchmark interest rate, the Monetary Policy Rate (MPR), from 26.5 per cent to 23 per cent, marking a significant 350-basis-point cut aimed at supporting economic growth as inflationary pressures begin to ease.
CBN Governor, Olayemi Cardoso, announced the decision after the conclusion of the Monetary Policy Committee (MPC) meeting, citing improving macroeconomic conditions, a moderation in inflation, and the resilience of the Nigerian economy despite prevailing global uncertainties.
Cardoso said the committee’s decision was influenced by positive economic indicators and the impact of recent monetary policy reforms, which have helped stabilize prices and strengthen confidence in the economy.
According to the apex bank, inflation is expected to moderate further in the coming months, driven largely by increased food supply during the harvest season and the continued effects of measures introduced to address inflationary pressures.
The CBN noted that Nigeria’s economy has remained resilient despite global geopolitical tensions and external economic shocks, with key indicators showing signs of sustained stability and growth.
The MPC expressed confidence that the reduction in the policy rate would support investments, boost private sector activities, and ease borrowing costs for businesses and households, while maintaining vigilance against potential inflationary risks.
Cardoso reaffirmed the bank’s commitment to safeguarding price stability and promoting sustainable economic growth through prudent monetary policies.
The latest rate cut represents a notable shift in the CBN’s monetary policy stance and signals growing optimism that inflation is gradually coming under control as economic conditions continue to improve.
