CBN cuts benchmark rate to 23% in policy reset
The Central Bank of Nigeria reduced its benchmark interest rate to 23 per cent from 26.5 per cent at the end of a rate-setting meeting. Governor Olayemi Cardoso described the move as an operational reset, while analysts said the cut was positive for markets.
The Central Bank of Nigeria has cut its benchmark interest rate to 23 per cent from 26.5 per cent. The reduction was announced at the end of the bank’s rate-setting meeting on Tuesday and was described in the supplied material as a surprise move. Analysts said the decision was positive for markets.
CBN Governor Olayemi Cardoso called the reduction “an operational reset”. He said the change was intended to improve the effectiveness of monetary policy and support the shift to an inflation-targeting framework. The available material does not identify the analysts who assessed the move or provide their reasoning.
It also does not include details of the meeting’s other decisions, the expected effect on inflation or the response from financial institutions. The rate now stands at 23 per cent, following the 3.5 percentage-point reduction from the previous benchmark.
This independently written report is based on information supplied by the named publisher. Vertrix News has not independently verified the source report.