CBN Continues Measured Easing with 50bps Rate Cut

The Monetary Policy Committee continued its cautious easing stance, reducing the Monetary Policy Rate (MPR) by 50bps to 26.5%. Other key parameters were left unchanged, including the asymmetric corridor at +50/-450bps and the Cash Reserve Ratio (CRR) for Deposit Money Banks, Merchant Banks, and non-TSA public sector deposits.

By holding these liquidity controls steady, the Committee maintained a tight policy undertone aimed at preserving the attractiveness of domestic investment instruments while gradually supporting economic growth.

Highlights at a Glance

The market has continued to adjust following the last MPC meeting, reflecting the CBN’s disciplined monetary stance.

Nigeria moved back into positive real interest rates as inflation slowed sharply. Real rates rose to their highest level since 2019, strengthening investor confidence, supporting the naira, and creating room for further rate cuts if disinflation continues.

Why This Matters

Slower inflation and stronger reserves give the market room for further rate cuts, though easing is expected to remain gradual, with another 50bps cut likely in May.

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Looking Ahead

Gradual easing suggests borrowing costs may decline further, but yields are likely to remain relatively attractive in the near term. Investors should expect measured adjustments, with policy decisions continuing to prioritize price stability, currency support, and sustained capital flows.

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If you would like to explore the full analysis, you can download the full Monetary Policy Report.