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.
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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.
