CBN REDUCES MONETARY POLICY RATE TO 27%
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By Sunmisola Shodayo
The Central Bank of Nigeria (CBN) has diminished the Monetary Policy Rate (MPR) by 50 basis points, decreasing it from 27.5 percent to 27 percent.
The Governor of the Bank, Mr. Olayemi Cardoso, disclosed this resolution on Tuesday during a press conference following the conclusion of the Monetary Policy Committee (MPC) meeting in Abuja.
He stated that the Committee resolved to: Decrease the MPR by 50 basis points to 27%; Modify the standing facilities corridor around the MPR to +250/-250 basis points.
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Increase the Cash Reserve Requirement (CRR) for commercial banks to 45%, while maintaining that of merchant banks at 16%. Implement a 75% CRR on non-TSA public sector deposits. Retain the Liquidity Ratio at 30%.
Mr. Cardoso clarified that the decision to reduce the policy rate was influenced by ongoing disinflation over the past five months, anticipated reductions in inflation throughout the remainder of 2025, and the necessity to bolster economic recovery initiatives.
He further noted that the modification of the standing facilities corridor was intended to enhance the efficiency of the interbank market and improve the transmission of monetary policy.
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