Nigeria Central Bank Lowers Interest Rate for First Time Since Sept 2020
The Monetary Policy Committee of the Central Bank of Nigeria decided on Tuesday to reduce its benchmark interest rate, also
The Monetary Policy Committee of the Central Bank of Nigeria decided on Tuesday to reduce its benchmark interest rate, also known as the monetary policy rate, for the first time in five years.
A breakdown of all parameter adjustments are as follows:
- Reduce the Monetary Policy Rate (MPR) by 50 basis points to 27.00%
- Adjust the asymmetric corridor around the MPR to +250/-250 basis points from +500/-100 basis points.
- Reduce the Cash Reserve Ratio (CRR) of Deposit Money Banks to 45.0% from 50.0% and retain the CRR of Merchant Banks at 16.0%.
- Introduce a 75% Cash Reserve Ratio (CRR) on Non-Treasury Single Account (TSA) public sector deposits.
- Retain the Liquidity Ratio at 30.0%.
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