The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has, for the first time in 10 meetings under Governor Olayemi Cardoso, lowered the Monetary Policy Rate (MPR) by 50 basis points to 27 percent.

The decision marks a significant policy shift, coming after six consecutive rate hikes totaling 875 basis points and three successive meetings where the MPR was held at 27.5 percent.

Alongside the rate cut, the MPC adjusted other key parameters.

The asymmetric corridor was reduced, while the Cash Reserve Ratio (CRR) for commercial banks was reviewed downward to 45 percent. Other policy benchmarks were left unchanged.

Explaining its decision, the Committee cited the sustained disinflation trend over the past five months and the need to bolster economic recovery.

It further assured that efforts are ongoing to improve efficiency in the interbank market and ensure price stability.