CBN Cuts Interest Rate to 23%, Impacts Ghana's Edge
On September 22, 2026, the Central Bank of Nigeria (CBN) reduced its benchmark Monetary Policy Rate (MPR) by 350 basis points from 26.5% to 23% during its 307th Monetary Policy Committee (MPC) meeting. This decision has narrowed Nigeria's interest-rate differential with Ghana, making Ghana a more appealing destination for portfolio capital inflows.
Following the rate cut, Nigeria's policy rate is now 7.61 percentage points above its headline inflation rate of 15.39%. In contrast, Ghana maintains a policy rate of 14% against an inflation rate of 5%, resulting in a wider differential of 9 percentage points.
Despite Nigeria's nominal policy rate being the highest among comparable African economies, the effective cushion for investors is less favorable than Ghana's due to its lower inflation. The naira's response to the rate cut was muted, remaining stable at about N1,387 in the parallel market.
Since September 2024, Nigeria's MPR has decreased by approximately 4.25 percentage points.
Plus234Feed summary based on reporting from Nairametrics. Read the original report below.
Read full article
Continue on Nairametrics
Get the week in one email
Top stories, NPFL results, the naira — every Friday morning. Free, one email a week.
Related Stories
CBN Lowers Benchmark Rate to 23%, Affecting Yields
CBN Cuts Interest Rate to 23% to Boost Economy
CBN Cuts Monetary Policy Rate to 23% to Shift Investments
Central Bank of Nigeria Cuts Monetary Policy Rate to 23%
CBN Cuts Benchmark Interest Rate to 23% in Surprise Move
Central Bank of Nigeria Lowers Benchmark Rate to 23%
Get Plus234Feed on messaging apps
Same headlines, delivered where you already scroll.
