CBN CUTS BENCHMARK INTEREST RATE TO 23 PERCENT
The Central Bank of Nigeria has cut its benchmark interest rate from 26.5 percent to 23 percent.
The Monetary Policy Committee announced the decision on Tuesday in Abuja after its 307th meeting. CBN Governor, Mr. Olayemi Cardoso, says 11 members attended the meeting.
The Committee also adjusted the Standing Facilities Corridor to plus 50, minus 300 basis points around the rate. It however left the Cash Reserve Requirement unchanged at 45 percent for commercial banks, 16 percent for merchant banks, and 75 percent for non-TSA public sector deposits.
Cardoso says the move is an operational adjustment to enhance monetary policy effectiveness and support transition to inflation targeting, not a change in policy stance.
He says the decision was based on improving indicators. He says balance of payments surplus rose to 3.51 billion dollars in second quarter of 2026, from 2.38 billion dollars in first quarter, while current account surplus rose by about 68 percent to 7.54 billion dollars.
The Committee also notes inflation is easing. Headline inflation fell to 15.39 percent in August from 15.43 percent in July, marking a third straight monthly decline. Food inflation dropped to 19.57 percent, while core inflation fell to 13.29 percent. The economy grew by 4.43 percent in the second quarter, up from 3.89 percent in the first.
External reserves now stand at 55.25 billion dollars as of September 18, the highest in 18 years, enough to cover over 11 months of imports. The next MPC meeting will hold on November 23 and 24, 2026.
