The Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) has reduced the benchmark interest rate to 27 per cent, down from 27.5 per cent in July, as part of efforts to stabilise the economy.
The Committee also announced fresh adjustments to banks’ cash reserve obligations. Commercial banks will now operate with a 45 per cent Cash Reserve Requirement (CRR), while merchant banks have been pegged at 16 per cent.
In a major policy shift, the MPC introduced a 75 per cent CRR on non-TSA public sector deposits, a move aimed at tightening control over idle government funds outside the Treasury Single Account framework.
Despite these changes, the MPC retained the liquidity ratio at 30 per cent, signalling its intention to strike a balance between credit availability and financial system stability.
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