The Central Bank of Nigeria has reduced its benchmark Monetary Policy Rate (MPR) by 50 basis points to 26.5 percent, marking a cautious return to monetary easing after an extended tightening cycle, according to Reuters.
The decision was announced at the conclusion of the Monetary Policy Committee meeting in Abuja, where Governor Olayemi Cardoso said members voted unanimously for a measured adjustment. He explained that easing inflationary pressures, relative exchange rate stability, and improvements in food supply conditions created room for a gradual reduction in borrowing costs while maintaining vigilance over macroeconomic risks, MarketScreener reported.
Nigeria’s headline inflation has recorded consecutive monthly declines in recent months, a development that has strengthened confidence in the disinflation trend. However, policymakers retained other key parameters, including the Cash Reserve Ratio, underscoring a cautious stance aimed at preserving financial system stability, as highlighted by Nairametrics.
BusinessDay says the modest cut signals the start of a gradual policy shift designed to support economic activity without undermining hard-won price stability gains. Further adjustments, they note, will likely depend on sustained progress in inflation control and broader fiscal conditions.
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