CBN has slashed MPR to 23% in major rate cut.
NewsOnline Nigeria reports that the Central Bank of Nigeria (CBN) has cut its Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent, representing a 350-basis-point reduction at its September 2026 Monetary Policy Committee (MPC) meeting.
The decision was announced on Tuesday, September 22, following the conclusion of the MPC’s 307th meeting.
The latest reduction marks a significant shift in the CBN’s monetary policy stance after the apex bank retained the MPR at 26.5 per cent at its July 2026 meeting. The rate had also been maintained at the May MPC meeting.
The decision comes amid a moderation in Nigeria’s headline inflation and relative stability in the foreign exchange market.
Nigeria’s headline inflation stood at 15.39 per cent in August 2026, down marginally from 15.43 per cent in July. Month-on-month inflation also declined during the period.
The rate cut is expected to have implications for borrowing costs, credit conditions and financial-market liquidity, although the extent and speed of transmission to businesses and consumers will depend on broader market conditions.
The full communiqué of the September MPC meeting is expected to provide further details on the committee’s decisions regarding the Cash Reserve Requirement (CRR), liquidity ratio, Standing Facilities Corridor and the rationale behind the rate cut.
The CBN’s latest decision represents its most significant reduction in the benchmark rate in 2026 and comes as policymakers assess the balance between sustaining the disinflation trend and supporting economic activity.
