‎CBN CUTS MPR TO 23%, SIGNALS EASING OF MONETARY POLICY ‎

‎CBN CUTS MPR TO 23%, SIGNALS EASING OF MONETARY POLICY

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‎The Central Bank of Nigeria has cut its benchmark interest rate by 350 basis points, from 26.5 per cent to 23 per cent, as the Monetary Policy Committee seeks to support economic activity amid moderating inflation and improved macroeconomic conditions.

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‎The decision was announced by CBN Governor Olayemi Cardoso at the conclusion of the meeting of the Monetary Policy Committee.

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‎The Committee also recalibrated the Standing Facilities Corridor to plus 50 and minus 300 basis points around the MPR.

‎However, the Cash Reserve Requirement for Deposit Money Banks remains at 45 per cent, while Merchant Banks retain 16 per cent, with 75 per cent for non-TSA public-sector deposits.

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‎The rate decision comes as inflation continues to moderate, while the CBN says domestic output growth is expected to remain resilient for the rest of 2026.

‎For individuals and households, a lower policy rate could, over time, translate into lower borrowing costs, particularly if banks transmit the reduction to consumer and personal loans. But the impact on lending rates will depend on how quickly banks adjust their own pricing.

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