Central Bank of Nigeria (CBN) don reduce Monetary Policy Rate (MPR) by 50 basis points from 27 per cent to 26.5 per cent.
Di decision come out from di 304th meeting of di Monetary Policy Committee (MPC) wey hold for Abuja on Tuesday.
CBN Governor, Olayemi Cardoso, announce di outcome after di meeting wey 11 members attend.
Inflation Drop Push Rate Cut
According to MPC, dem decide to cut di benchmark interest rate because key economic indicators dey improve, especially inflation.
Headline inflation drop for di eleventh straight month reach 15.1 per cent for January 2026, show say price pressure dey reduce gradually.
Other Policy Rates Remain
Even though dem cut MPR to 26.5 per cent, MPC keep other parameters unchanged:
Cash Reserve Ratio remain 45% for commercial banks and 16% for merchant banks.
Liquidity Ratio stay at 30%.
Standing Facilities Corridor fixed at +50/-450 basis points around di MPR.
Committee talk say even as inflation dey ease, dem still dey careful to protect financial system stability.
First Rate Cut After Tight Policy
Dis na di first time CBN go reduce interest rate after long period of aggressive tightening to fight inflation and stabilise naira.
For di 303rd MPC meeting, di committee bin retain di rate at 27 per cent. Di new 26.5 per cent rate na di lowest since May 2024 when rate stand at 26.25 per cent.
Experts Divide Before Meeting
Before di meeting, market analysts get mixed expectations. Some believe say improving economic conditions create room for rate cut, while others advise caution, say e too early for major shift.
With inflation trending downward and liquidity condition relatively stable, analysts say di move show gradual shift towards monetary easing while CBN still maintain safeguards to protect macroeconomic stability.
