The Central Bank of Nigeria has cut its benchmark interest rate from 26.5 per cent to 23 per cent, reducing the Monetary Policy Rate by 350 basis points.
CBN Governor, Olayemi Cardoso, announced the decision on Tuesday after the Monetary Policy Committee’s 307th meeting in Abuja.
The decision marks the first reduction after the committee retained the rate at 26.5 per cent at its previous two meetings.
The rate cut comes as Nigeria’s inflation has moderated in recent months.
August headline inflation stood at 15.39 per cent, down slightly from 15.43 per cent in July, while month-on-month inflation fell to 0.71 per cent from 1.57 per cent.
The new 23 per cent MPR is the lowest level since February 2024, according to reports.
The Monetary Policy Committee’s decision was announced at the end of its two-day meeting, with Cardoso stating that the committee had decided to reset the policy rate to 23 per cent.
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