The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has reduced the benchmark interest rate to 26.5 percent.
This was made known by the CBN governor, Olayemi Cardoso, at the end of the committee’s 304th meeting in Abuja.
He said, “The committee’s decision was premised on a balanced evaluation of risks to the outlook, which suggests that the ongoing disinflation trajectory would continue, largely supported by the lagged transmission of previous monetary tightening, sustained exchange rate stability, and enhanced food supply.
“This downward trajectory in inflation was driven mainly by the continued effects of the contractionary monetary policy, stability in the foreign exchange, robust capital inflows, and improvement in the balance of payments.
“The momentum was further reinforced by relative stability in the prices of petroleum products and improved food supply conditions, especially staples. These outcomes have indicated that prior tightening has continued to anchor expectations.”
The CBN cut its lending rate by 50 basis points from the previous benchmark of 27 percent.
More details later.
