CBN Cuts Interest Rate to 26.5% in Latest Decision

The Central Bank of Nigeria (CBN), under the leadership of Governor Olayemi Cardoso, has announced a reduction in the monetary policy interest rate by 50 basis points, bringing it down to 26.5%. This decision was disclosed during a brief media interaction following the 304th Monetary Policy Committee meeting held in Abuja on Tuesday.

The committee also decided to maintain the cash reserve requirement for deposit money banks at 45 percent and for merchant banks at 16 percent. The committee's decision was based on a balanced evaluation of the risk outlook, suggesting that disinflation will continue as a result of previous monetary policy measures aimed at enhancing food supply.

Governor Cardoso noted that this marks the 11th consecutive decline in inflation, reflecting a sustained deceleration year-on-year. The meeting was attended by 11 committee members.