The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reduced the benchmark interest rate by 50 basis points, lowering it from 27.5 per cent to 27 per cent.
Governor Olayemi Cardoso disclosed this while briefing journalists on the outcome of the 302nd MPC meeting in Abuja.
According to him, the reduction comes after three consecutive pauses in rates.
The governor further announced that the cash reserve requirement for commercial banks has been adjusted to 45 per cent, while that of merchant banks remains at 16 per cent.
Also Read: CBN Retains Interest Rate at 27.50 per cent.
He added that the MPC retained the Liquidity Ratio at 30 per cent and adjusted the Asymmetric Corridor to +250/-250 basis points, down from +500/-100 basis points around the MPR.
The bank also introduced a 75 per cent cash reserve ratio on non-TSA public sector deposits.
Cardoso explained that the MPC’s decision was premised on the recent moderation in inflation.