Skip to main content

Declined Inflation: CBN Crashes Interest Rate To 23%

BY CHIKA OKEKE, Abuja

Olayemi Cardoso

The Central Bank of Nigeria has crashed the benchmark interest rate to 23 percent from 26.5 percent, signifying a three percent reduction from the last interest rate. 

CBN Governor, Olayemi Cardoso disclosed the decision on Tuesday at the end of the Monetary Policy Committee ,MPC, 307th meeting in Abuja.

He said: "The Committee decided as follows: reset the monetary policy rate at 23 per cent."

This followed consecutive decreases in Nigeria’s inflation rates, just as the current inflation rate marked its third decline after three consecutive monthly increases.

Cardoso pointed out that the committee examined recent trends in the global and domestic economic environment, considered emerging risks to the outlook and evaluated their potential for monetary policy.

The Consumer Price Index ,CPI, report released by the National Bureau of Statistics ,NBS, highlighted that Nigeria’s headline inflation rate eased marginally to 15.39 per cent in August 2026 from 15.43 per cent recorded in July.

Cardoso noted that the Committee also adjusted the standing facility corridor to +50 and -300 basis points around the Monetary Policy Rate, MPR, while retaining the Cash Reserve Requirement ,CRR, at 45 per cent for deposit money banks, 16 per cent for merchant banks, and 75 per cent for non-TSA public sector deposits.

He added: "The Committee decided to reset the MPR and recalibrate the policy corridor as an important operational realignment aimed at strengthening monetary policy transmission and enforcing the primacy of the rate.

The MPC emphasised that the duration of the corridor does not constitute a change in the current monetary policy stance, but rather an operational reset to enhance the effectiveness of monetary policy and support the transition to an inflation targeting framework.

“Members are of the view that the macroeconomic environment remains supportive of such a recalibration without undermining the disinflation process," he added.

The CBN governor said that the members highlighted the bank’s ongoing repair of the monetary policy implementation framework, saying that the transaction-based operational benchmark proved the transparency of money market operations.

He said: "The committee therefore considered the reset of the MPR and recalibration of the corridor appropriate to better align the monetary policy implementation framework with market realities.

“This would strengthen policy transmission and restore the MPR as a principal signal of monitor.”

In addition, the members noted that the recalibration represented an operational realignment of the framework, which should not be construed as a change in the underlying policy stance.

Comments

Post a Comment

Popular posts from this blog

EHCON Moves To Rebrand Environmental Health Sector Using Artificial Intelligence

BY CHIKA OKEKE, Abuja   Dr Yakubu Baba The Environmental Health Council of Nigeria (EHCON) has taken cogent steps to rebrand the environmental health sector using artificial intelligence.  Already, plans are underway to extend the initiative across the six geopolitical zones, as no community would be sidelined.  The Registrar of EHCON, Dr Yakubu Baba stated this in Abuja at a 3-day workshop organised by EHCON in collaboration with Afri-Tourism Investment Limited and West Africa Gas Pipeline Authority (WAGPA) with the theme: "AI-Driven Operations and Predictive Analysis." The essence of the workshop is to improve environmental health practice and prevent emerging diseases using artificial intelligent.   It is expected to empower Environmental Health Officers (EHOs) with the necessary digital skills needed to deepen environmental health practice and provide workable  solutions to problems.  Baba noted that integrating AI into environmental he...
Post a Comment
Read more

EHCON Unveils Technology To Phase-out Emissions, Protect Public Health

BY CHIKA OKEKE, Abuja The Environmental Health Council of Nigeria (EHCON) has unveiled a technology meant to phase-out Greenhouse Gas (GHG) emissions and protect public health from emerging diseases, in line with the Paris Agreement on Climate Change.  Tagged Oxytane Fuel Additive, it is designed to enhance engine performance, increase fuel efficiency by over 25 percent, and reduce harmful emissions by up to 70 percent. It has been tested on high-capacity generators, including at the Office of the Head of Service of the Federation. Oxytane works by cleaning fuel injectors, removing carbon deposits, and improving combustion in petrol, diesel, and kerosene engines. It is used for personal vehicles, generators, and industrial equipment.  Unveiled by EHCON in partnership with the Federal Ministry of Environment and Oxytane Africa Investment Limited, the initiative will strengthen environmental governance and control Nigeria's carbon footprints.  These formed the c...
6 comments
Read more

EHCON Bolsters NDCs With National Response Initiative On Greenhouse Gas Emissions

BY CHIKA OKEKE, Abuja Environmental Health Council of Nigeria (EHCON) has strengthened Nigeria's Nationally Determined Contributions (NDCs) with the unveiling of national response initiative, meant to cripple diseases traceable to Greenhouse Gas (GhG) emissions nationwide.  This formed the crux of discuss on Monday at the National Stakeholders’ Engagement on Greenhouse Gas (GHG) Emissions and the Declaration of a Public Health Emergency on Environmental-Related Diseases.  The National Emergency Response Initiative on Environmental Public Health Impacts of Greenhouse Gas Emissions (NERI-EPHIGGE) was designed to strengthen Environmental Health Service (EHS) delivery, promote climate responsive public health interventions and enhance the professional capacity of Environmental Health Practitioners (EHPs) across the country to mitigate GhG emissions.  Registrar/Chief Executive Officer of Environmental Health Council of Nigeria (EHCON) Dr Yakubu Baba said that the i...
Post a Comment
Read more