The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (benchmark interest rate) to 27% from 27.5%.
The asymmetric corridor around the MPR was retained at +260 and -250 basis points. The liquidity ratio was left unchanged at 30 percent.
The MPC also reduced the cash reserve requirement to 45 per cent for commercial banks and retained that of merchant banks at 16 per cent.
The Committee has also introduced a 75 per cent cash reserve requirement on non-TSA public sector deposits for enhanced liquidity management.
According to the CBN Governor, Olayemi Cardoso, the committee’s decision to lower the monetary policy rate was predicated on the sustained disinflation recorded in the past five months, projections of declining inflation for the rest of 2025, and the need to support economic inflation records.
Source: CBN reduces benchmark interest rate to 27% – StocksWatch
