The Central Bank of Nigeria, CBN, has cut the interest rate by 50 basis points to 26.50 percent from 27 percent.

Nigeria’s apex bank announced this during its 304th Monetary Policy Committee, MPC, meeting held in Abuja on Tuesday.

The CBN Governor, Olayemi Cardoso, said all members of the MPC unanimously agreed upon the decision.

“The committee decided to reduce the monetary policy rate by 50 basis points to 26.50 percent,” he said.

Cardoso stated that the liquidity ratio was maintained at 30 percent, and the standing facilities corridor was adjusted to +50 to -450 basis points around the monetary policy rate.

He said the committee retained the Cash Reserve Ratio (CRR) at 45 percent for commercial banks and 16 percent for merchant banks, while the 75 percent CRR on non-TSA public sector deposits was equally maintained.

The CBN uses the MPR, which works as the benchmark interest rate, to manage inflation, macroeconomic stability, and liquidity.

Last November, the MPC retained the Monetary Policy Rate (MPR) at 27.00 percent. The last time the apex bank cut interest rates was in September last year, from 27 percent to 27.50 percent.

The country’s interest rate dropped in January to 15.10 percent from 15.15 percent, according to the National Bureau of Statistics.