By Tony Obiechina, Abuja
The Central Bank of Nigeria (CBN) has lowered the benchmark interest rate from 26.5% to 23%, signalling a shift in the apex bank’s inflation-fighting stance after its 307th meeting of the Monetary Policy Committee (MPC) in Abuja on Tuesday.
The MPC retained the Cash Reserve Requirement at 45 percent for Deposit Money Banks, 16 percent for Merchant Banks, and 75 percent for non-TSA public sector deposits, keeping liquidity controls in the banking system unchanged even as it adjusted the headline rate.
Members of the Committee also recalibrated the Standing Facilities Corridor to +50 and -300 basis points around the new Monetary Policy Rate (MPR), a move that determines the rates at which banks can borrow from or deposit funds with the central bank.
In summary, the MPC’s decisions were as follows:
Monetary Policy Rate (MPR): Reset to 23 percent.
Standing Facilities Corridor: Recalibrated at +50 / -300 basis points around the MPR.
Cash Reserve Requirement (CRR): Retained at 45 percent for Deposit Money Banks, 16 percent for Merchant Banks, and 75 percent for non-TSA public sector deposits.
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