Central Bank on Tuesday lowered its Monetary Policy Rate by 50 basis points to 26.5 percent, signalling the first meaningful easing in the tight monetary stance that has defined the past 18 months.
The Monetary Policy Committee took the decision at the end of its 300th meeting, citing moderating inflationary pressures and the need to support credit flow to the real sector.
In a brief statement issued after the meeting, the CBN said the committee voted unanimously to adjust the rate while retaining the asymmetric corridor at +500 and -100 basis points around the MPR.
The reduction comes as headline inflation has shown signs of deceleration in recent months, though it remains in the high 20s.
The new rate takes effect immediately and is expected to ease borrowing costs for businesses and households, particularly in the agriculture and manufacturing sectors that have been hardest hit by high lending rates.
