MPC slashes benchmark rate by 350 basis points, retains cash reserve requirements for banks
The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent, marking a 350-basis-point cut.
CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the end of the Monetary Policy Committee’s 307th meeting in Abuja.
“The Committee decided as follows: reset the monetary policy rate at 23 per cent,” Cardoso said.
The latest reduction comes after the MPC retained the rate at its two previous meetings, following a 50-basis-point cut in February 2026.
The committee also recalibrated the standing facility corridor to +50 and -300 basis points around the MPR.
It retained the Cash Reserve Requirement (CRR) at 45 per cent for deposit money banks, 16 per cent for merchant banks and 75 per cent for non-Treasury Single Account public sector deposits.
The 23 per cent MPR represents the lowest benchmark rate since February 2024, according to reports on the MPC decision.