CBN Cuts Interest Rate to 27% to Stimulate Economic Recovery

The Monetary Policy Committee of the Central Bank of Nigeria has reduced interest rates by 50 basis points from 27.5 percent to 27 percent. The Central Bank Governor disclosed this while briefing the media on the outcome of the 302nd MPC meeting in Abuja.

The governor also announced adjustments to the cash reserve requirement for commercial banks, setting it at 45 percent, while the requirement for merchant banks remains unchanged at 16 percent. Additionally, a 75 percent cash reserve ratio has been introduced for non-TSA public sector deposits.

The governor explained that the committee's decision was based on the recent moderation in inflation.