CBN Cuts Interest Rate to 27% as Inflation Eases - Economic Update

The Central Bank of Nigeria (CBN) has reduced its benchmark interest rate by 50 basis points to 27% as inflation eases. This decision was made during the Monetary Policy Committee meeting in Abuja, led by CBN Governor Olayemi Cardoso.

Nigeria is among four African countries, including South Africa, Egypt, and Algeria, to lower borrowing costs in the past year. The rate cut follows a slowdown in inflation for the fifth consecutive month in August, with the naira appreciating against the dollar since July.

The MPC has maintained the benchmark rate for three consecutive meetings, with a cumulative increase of 16 percentage points since May 2022.