Samuel Mobolaji
The Central Bank of Nigeria (CBN) has reduced the interest rate on its Open Market Operation (OMO) bills to 24.32 per cent during the primary market auction held on Thursday.
This marks a significant adjustment as the CBN continues its aggressive measures to combat double-digit inflation, which has prompted a hike in the benchmark interest rate to 27.25 per cent.
During the OMO auction, the CBN offered N500 billion across standard maturities, attracting a demand of N737.14 billion, predominantly focused on longer maturities, according to analysts at CardinalStone Securities Limited.
The CBN matched the demand at a stop rate of 24.32 per cent. This is a decrease from the previous auction, where the OMO bill was priced at 24.44 per cent, with the CBN raising a total of N254.90 billion.
This reduction in interest rates reflects the CBN’s ongoing efforts to manage liquidity in the financial system while addressing the inflationary pressures that continue to affect the Nigerian economy.
