CBN’s small rate cut welcomed as positive step by private sector
The Central Bank of Nigeria’s Monetary Policy Committee has reduced the benchmark interest rate to 26.5 per cent. The move was announced by Olayemi Cardoso and described by members of the Organised Private Sector as a modest but encouraging signal for businesses. Private sector leaders noted that while the cut is minimal, it reflects a shift toward supporting economic growth. They emphasized that further reforms are needed for the policy to have a meaningful impact.
TLDR
- The Monetary Policy Committee cut the Monetary Policy Rate by 50 basis points from 27 per cent to 26.5 per cent, with all 11 committee members present.
- Olayemi Cardoso said the committee also retained the Cash Reserve Requirement for Deposit Money Banks at 45 per cent and other key parameters.
- Private sector leaders, including Adewale Oyerinde, Segun Kuti-George, Muda Yusuf, and Chinyere Almona, welcomed the move as a cautious but positive development.
- They noted that the rate cut alone may not immediately lower lending rates and called for coordinated fiscal and structural reforms to support growth.
- The Lagos Chamber of Commerce and Industry highlighted the need for further policy predictability and investment-friendly reforms to ensure lasting benefits for businesses.
