The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has cut the benchmark Monetary Policy Rate (MPR) to 23 per cent from 26.5 per cent.
CBN Governor and Chairman of the MPC, Olayemi Cardoso, announced the decision on Tuesday at the end of the committee’s 307th meeting in Abuja.
Cardoso said the committee had resolved to reset the monetary policy rate to 23 per cent.
“The Committee decided as follows: reset the monetary policy rate to 23 per cent,” he said.
The decision marks a significant reduction from the 26.5 per cent rate retained at the MPC’s previous meetings.
It also follows the easing trend in Nigeria’s inflation rate. According to the National Bureau of Statistics, headline inflation declined marginally from 15.43 per cent in July 2026 to 15.39 per cent in August.
The August figure marked another decline in headline inflation amid the recent downward trend in the country’s inflation rate.
The latest rate cut is the MPC’s most significant reduction in the recent easing cycle as the CBN continues to assess inflation, economic growth and other macroeconomic developments.
The decision is expected to have implications for borrowing costs, credit availability and economic activity as banks and other financial institutions adjust to the new monetary policy rate.
Further details of the MPC’s decisions and its assessment of the economy are expected to be contained in the committee’s latest communiqué.
