The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reduced the country’s benchmark interest rate to 27%, marking the first rate cut in 2025.
The CBN Governor, Olayemi Cardoso, announced the decision on Tuesday during a press briefing following the 302nd MPC meeting in Abuja.
“The Committee decided as follows: reduce the monetary policy rate by 50 basis points to 27 per cent,” Cardoso stated.
This 50-basis-point cut comes after three consecutive pauses in rates, reflecting the committee’s cautious but responsive stance toward prevailing economic indicators.
Reason for the Cut
According to Cardoso, the reduction was influenced by consistent disinflation trends observed across the country’s economy. Nigeria had recorded six consecutive interest rate hikes in 2024 before the policy shift.
The adjustment is expected to ease borrowing costs for businesses and households, potentially stimulating investment and consumption. Analysts, however, caution that the CBN will continue to monitor inflationary pressures and foreign exchange stability closely in the months ahead.
More details shortly as the 9am News report continues to track the outcomes of this latest monetary policy shift.
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