CBN Cuts Interest Rate To 23% From 26.5%
The committee also kept cash reserve ratios high and adjusted the corridor to push banks toward lending as inflation eased to 15.39% in August, the National Bureau of Statistics said.
- In Abuja, The Central Bank cut its benchmark interest rate to 23% during the two-day, 307th Monetary Policy Committee meeting, which ran from 21 to 22 September and concluded with a renewed focus on inflation pressures.
- The Monetary Policy Committee reset the Monetary Policy Rate and recalibrated the policy corridor as what CBN described as an operational realignment to strengthen monetary policy transmission rather than a change in overall policy stance.
- To manage liquidity, the committee maintained the Cash Reserve Ratio for commercial banks at 45 per cent, kept the rate for merchant banks at 16 per cent, and left non-TSA public-sector deposits at 75 per cent.
- Adjustments to the asymmetric facilities corridor around the MPR were approved by the MPC to discourage banks from keeping idle funds with the CBN and to encourage increased lending into the wider economy.
- While headline inflation eased to 15.39 per cent in August according to the National Bureau and Statistics, CBN Governor Olayemi Cardoso warned that renewed fuel price increases in Nigeria could again push up the cost of goods and services.
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23 Articles
Nigeria: Central Bank Cuts Interest Rate
"It emphasised that the recalibration of the corridor does not constitute a change in the current monetary policy stance, but rather an operational reset to enhance the effectiveness of monetary policy and support the transition to an inflation targeting framework," CBN said.
BREAKING: CBN cuts interest rate to 23 percent
The Central Bank of Nigeria, CBN, has cut its interest rate to 23 per cent from 26.5 per cent. The CBN Governor, Olayemi Cardoso, disclosed this during a briefing after the 307th Monetary Policy Committee, MPC meeting on Tuesday. Announcing the rate cut, Cardoso said, “The Committee decided as follows: reset the monetary policy rate […] BREAKING: CBN cuts interest rate to 23 percent
JUST IN: CBN cuts interest rate to 23%
“It emphasised that the recalibration of the corridor does not constitute a change in the current monetary policy stance, but rather an operational reset to enhance the effectiveness of monetary policy and support the transition to an inflation targeting framework," CBN said.
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