CBN slashes interest rate to 27 percent

The Central Bank of Nigeria (CBN) has reduced its benchmark interest rate by 50 basis points, lowering it from 27.5 percent to 27 percent.

The announcement was made by CBN Governor, Olayemi Cardoso, during a media briefing in Abuja following the 302nd Monetary Policy Committee (MPC) meeting on Tuesday.

Cardoso also disclosed adjustments to the cash reserve requirement, stating that commercial banks are now required to maintain 45 percent, while merchant banks’ reserve ratio remains unchanged at 16 percent.

Also, the CBN introduced a 75 percent cash reserve ratio for non-TSA public sector deposits.

“The decision of the MPC was premised on the recent moderation in inflation,” Cardoso explained, noting that the move is intended to support economic stability and ensure sufficient liquidity in the financial system.

More details to come….