The Central Bank of Nigeria (CBN)’s Monetary Policy Committee, MPC, on Tuesday cut the interest rate from 27.50 percent to 27 percent from 27.50 percent.
The Governor of CBN, Olayemi Cardoso, disclosed this during a press briefing on Tuesday after the 302nd MPC meeting in Abuja.
“The Committee decided as follows: (1) reduce the monetary policy rate by 50 basis points to 27 per cent,” he said.
This 50 basis points reduction comes after three consecutive pauses in rates.
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According to him, the members of the MPC unanimously agreed to the cut due to the country’s inflation decline for the past five months.
MPC also adjusted the Cash Reserve Ratio, CRR, to 45 percent for Deposit Money Banks and 16 percent for Merchant Banks.
It also adjusted the asymmetric corridor at +250/-250 basis points around the MPR.
The committee retained the liquidity ratio, LR, at 30 percent.