Nigeria's central bank has cut its benchmark interest rate by 200 basis points to 8 percent, after a steady decline in inflation, the bank said in a statement on Wednesday.
In the first change of its benchmark Monetary Policy Rate (MPR) since its introduction in December, the bank's monetary policy committee also narrowed the corridor around the MPR to +/- 250 basis points, from +/- 300 basis points.
The interest rate corridor sets the limits on overnight lending and borrowing by banks and its introduction has significantly dampened rate volatility. "The deposit facility now stands at 5.5 percent while the lending facility would be 10.5 percent, both down from 7 and 13 percent, respectively," the statement said.