The Central Bank of Nigeria (CBN) has cut the Monetary Policy Rate (MPR) by 350 basis points to 23% from 26.5%, following the 307th meeting of its Monetary Policy Committee (MPC) in Abuja.

The decision, reached by the 11 members in attendance, marks the first change to the benchmark rate since the MPC retained it at 26.5% in July 2026.

The MPC also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the new MPR, placing the Standing Lending Facility at 23.5% and the Standing Deposit Facility at 20%.

However, the committee retained the Cash Reserve Requirement (CRR) at 45% for Deposit Money Banks, 16% for Merchant Banks and 75% for non-TSA public sector deposits.

The rate cut comes against the backdrop of easing inflation, which stood at 15.39% in August 2026, according to the National Bureau of Statistics.

The new policy rate could affect borrowing costs, bank lending, investment and economic activity as the CBN seeks to strengthen monetary policy transmission.