CBN slashes interest rate to 23% as inflation continues to ease

The Central Bank of Nigeria (CBN) has cut its benchmark interest rate to 23 per cent from 26.5 per cent, representing a 350 basis points reduction in the Monetary Policy Rate (MPR), according to Peoples Gazette.

CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the end of the two-day Monetary Policy Committee (MPC) meeting, saying the committee also recalibrated the standing facilities corridor to +50/-300 basis points around the MPR, while retaining the Cash Reserve Requirement for deposit money banks at 45 per cent.

Cardoso explained the move was aimed at strengthening the MPR’s role as the key interest rate signal, stressing it was an “operational reset” rather than a shift in monetary policy stance.

The decision follows a third consecutive monthly slowdown in inflation, alongside stronger GDP growth, rising crude output, and external reserves of $55.25 billion as of September 18 — enough to cover 11.3 months of imports.