CBN Cuts Interest Rate to 26.50% After MPC Meeting

On February 24, 2025, the Central Bank of Nigeria (CBN) announced a reduction in the monetary policy rate (MPR) by 50 basis points, bringing it down to 26.50%. This decision was made during the 304th meeting of the Monetary Policy Committee, where all members unanimously agreed on the rate cut.

Governor Cardoso confirmed that other monetary policy parameters, including the cash reserve ratio (CRR) for commercial banks at 16% and merchant banks at 75%, remained unchanged. The CRR for non-treasury single accounts for public sector deposits was also maintained.

The liquid ratio was retained at 30%. This interest rate cut is significant as it is the first adjustment in several months, with the last rate cut occurring in September of the previous year.

Additionally, data from the National Bureau of Statistics indicated a slight drop in the country's inflation rate to 15.10% in January from 15.15% in December.