CBN Cuts Interest Rate To 27% Amid Signs Of Recovery, OPS Calls Move Insufficient

The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has lowered the benchmark interest rate to 27 percent, marking the first reduction in five years and signaling a shift toward stimulating economic growth. tincho73 cate blanchett nude

The decision, announced on Tuesday by CBN Governor Olayemi Cardoso after the committee’s 302nd meeting, represents a 50-basis point cut from 27.5 percent. Cardoso said all 12 MPC members supported the move, citing five months of steady disinflation and the need to boost recovery.

Inflation dropped to 20.12 percent in August from 21.88 percent in July, with both food and core inflation easing. Nigeria’s GDP also expanded by 4.23 percent in the second quarter, boosted by a 20.46 percent rebound in the oil sector.

Alongside the cut, the MPC raised commercial banks’ Cash Reserve Requirement (CRR) to 45 percent, introduced a 75 percent CRR on non-TSA public deposits, and kept the Liquidity Ratio at 30 percent.

While business leaders welcomed the rate cut, they argued it was too small to ease credit constraints. The Manufacturers Association of Nigeria described the move as “a step in the right direction but far from expectations,” stressing that single-digit rates are needed to support production.

The Nigeria Employers’ Consultative Association warned that high CRR levels would blunt the impact of the cut, while the Association of Small Business Owners said the 0.5 reduction was “insignificant” given the pressures on SMEs.

Labour groups echoed similar concerns, with the Nigeria Labour Congress urging policies that would make loans more affordable for manufacturers to expand production and create jobs.

Economists view the cut as the start of a gradual easing cycle, with further reductions possible in November if inflation keeps falling. However, they caution that monetary policy alone is insufficient without fiscal reforms, improved infrastructure, and stronger security to attract private investment.