CBN Cuts Interest Rate to 27% Amid Inflation Decline - Economic Stimulus Move

The Central Bank of Nigeria (CBN) has cut the benchmark interest rate to 27% as inflation has decreased for the fifth consecutive month. This marks the first rate cut since May 2023.

Governor Olayemi Cardoso announced the decision after the 302nd Monetary Policy Committee (MPC) meeting in Abuja. In addition to the rate cut, the MPC also adjusted the Cash Reserve Ratio (CRR) to 45% for Deposit Money Banks and 16% for Merchant Banks.

The move aims to stimulate economic growth by lowering production costs. Despite progress, Nigeria still faces high interest rates and inflation figures compared to other countries on the continent.