The Central Bank of Nigeria (CBN) has reduced the benchmark interest rate by 50 basis points to 26.50 percent from 27 percent.

The decision was announced on Tuesday at the Monetary Policy Committee meeting in Abuja.

CBN Governor Olayemi Cardoso said the committee unanimously approved the reduction. He added that the liquidity ratio was retained at 30 percent, while the Cash Reserve Ratio remained at 45 percent for commercial banks and 16 percent for merchant banks.

The Monetary Policy Rate is used to control inflation and manage economic stability.

The rate had been held at 27 percent since November.