JUST IN: CBN reduces Monetary Policy Rate to 27%

The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points, from 27.5 percent to 27 percent, THE PRIME NEWS reports.

Governor of the Bank, Mr. Olayemi Cardoso, announced the decision on Tuesday during a press briefing at the end of the Monetary Policy Committee (MPC) meeting in Abuja.

According to him, the Committee resolved to: Reduce the MPR by 50 basis points to 27%. Adjust the standing facilities corridor around the MPR to +250/-250 basis points.

Raise the Cash Reserve Requirement (CRR) for commercial banks to 45%, while retaining that of merchant banks at 16%. Introduce a 75% CRR on non-TSA public sector deposits. Retain the Liquidity Ratio at 30%.

Mr. Cardoso explained that the decision to lower the policy rate was driven by sustained disinflation over the past five months, projected declines in inflation through the remainder of 2025, and the need to strengthen economic recovery efforts.

He added that the adjustment of the standing facilities corridor was aimed at improving the efficiency of the interbank market and enhancing monetary policy transmission.