CBN Cuts MPR to 27% in First Reduction Since 2020 to Support Economic Growth

The Central Bank of Nigeria (CBN) has cut its Monetary Policy Rate (MPR) to 27%, the first reduction since 2020, during the two-day Monetary Policy Committee (MPC) meeting in Abuja. This decision signals a shift towards a more accommodative monetary policy stance to boost economic growth without compromising macroeconomic stability.

The CBN also adjusted other measures such as reducing the Cash Reserve Ratio (CRR) for commercial banks to stimulate lending to the private sector. Governor Olayemi Cardoso emphasized the need to support economic recovery efforts amid declining inflation and stable exchange rates.

The move is seen as an attempt to fine-tune liquidity conditions to support growth while managing inflationary risks.