The Central Bank of Nigeria (CBN) has cut its benchmark interest rate by 50 basis points, lowering it to 27% following the decision of the Monetary Policy Committee (MPC) on Tuesday in Abuja.
CBN Governor, Olayemi Cardoso, announced the adjustment after the committee’s meeting.
Nigeria, Africa’s fourth-largest economy after South Africa, Egypt, and Algeria, is the last among the four to reduce borrowing costs within the past year.
The MPC had maintained the benchmark rate at 27.5% for three consecutive meetings, after a cumulative increase of 16 percentage points since May 2022.
The rate cut follows recent data showing inflation slowed for the fifth consecutive month in August, easing to 20%, while the naira recorded a 2.8% appreciation against the dollar since July.
