BY FRONTLINE REPORTERS

The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) to 23 per cent, signaling a shift in the country’s monetary policy stance as the apex bank’s Monetary Policy Committee (MPC) concludes its latest meeting.

CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the end of the committee’s 307th meeting, held in Abuja.

Cardoso said the committee resolved to reset the benchmark interest rate to 23 per cent.

“The Committee decided as follows: reset the monetary policy rate to 23 per cent,” Cardoso said.

The MPR is a key policy rate used by the CBN to influence borrowing costs, liquidity and overall financial conditions in the economy. Changes to the rate can affect the cost of credit for businesses and households, as well as savings and investment decisions across the financial system.

The latest decision therefore comes with potential implications for banks, businesses and consumers, particularly in an economy where the cost of borrowing has remained a major concern.

The MPC’s decision is part of the CBN’s broader effort to balance the need to contain inflation with the objective of supporting economic activity and maintaining stability in the financial system.

The committee’s announcement will be closely watched by financial institutions, investors and businesses as they assess what the lower policy rate could mean for lending conditions, investment and economic activity in the months ahead.

Further details of the MPC’s decision, including the committee’s assessment of inflation, exchange-rate developments, economic growth and other key indicators, are expected to provide additional insight into the rationale behind the rate adjustment.

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