CBN Retains Monetary Policy Rate at 26.5%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (Central Bank of Nigeria) has voted to retain the Monetary Policy Rate (MPR) at 26.5% following its 305th meeting held in Abuja.

The decision was announced on Wednesday by the CBN Governor, Olayemi Cardoso, who confirmed that all key monetary parameters were left unchanged after deliberations by 11 committee members in attendance.

According to him, “The Committee resolved to retain the Monetary Policy Rate at 26.5 per cent,” signalling a continued cautious stance on inflation control and broader macroeconomic stability.

The MPC also retained the standing facilities corridor around the MPR at +500 and -450 basis points. In addition, the Cash Reserve Requirement (CRR) was maintained at 45% for Deposit Money Banks, 16% for Merchant Banks, and 75% for non-TSA public sector deposits.

Cardoso explained that the committee’s decision was based on a comprehensive review of economic conditions, inflation trends, and external risks affecting the Nigerian economy.

He noted that although inflation had risen marginally for two consecutive months, the committee attributed the increase largely to external shocks, describing it as potentially temporary.

“Although inflation has risen marginally for two consecutive months, largely induced by external shocks, the MPC recognises its transitory nature and remains confident that the current macroeconomic environment is sufficiently robust to support a return to disinflation,” he said.

The decision follows earlier monetary adjustments, including a 50-basis-point reduction in February 2026 and a subsequent hold at the November 2025 meeting, reflecting the CBN’s balancing act between controlling inflation and supporting economic growth.

By maintaining the benchmark interest rate and other policy tools, the apex bank signalled its intention to continue monitoring inflationary pressures while preserving financial system stability and investor confidence.