The Central Bank of Nigeria (CBN) has kept its benchmark Monetary Policy Rate (MPR) unchanged at 26.5% following the conclusion of its 305th Monetary Policy Committee (MPC) meeting held in Abuja. The decision reflects continued caution by policymakers as they assess inflation trends and broader macroeconomic stability.
CBN Governor Olayemi Cardoso announced the outcome, noting that all committee members in attendance agreed to maintain existing monetary policy parameters. The move signals a steady policy stance after recent adjustments in earlier meetings.
Brandspur Banking News Desk reports that the MPC also retained other key monetary tools, including the Cash Reserve Ratio (CRR), which remains at 45% for commercial banks and 16% for merchant banks, alongside a 75% CRR on non-TSA public sector deposits. The Standing Facilities Corridor was also left unchanged at +50/-450 basis points around the MPR, while the Liquidity Ratio remains at 30%.
The committee said its decision was driven by persistent inflationary pressures and the need to preserve macroeconomic stability. Recent data showing successive increases in inflation for March and April 2026 further reinforced the cautious approach adopted by policymakers.
Nigeria’s headline inflation rose to 15.69% in April 2026, up from 15.38% in March 2026, underscoring ongoing price pressures in the economy despite earlier signs of moderation. The MPC had previously cut the MPR by 50 basis points in February 2026, marking the first rate reduction after a prolonged tightening cycle.
Analysts had widely expected the decision to hold rates, citing inflation risks, exchange rate instability, and global economic uncertainty, including rising crude oil prices and geopolitical tensions. These factors continue to influence the CBN’s balancing act between controlling inflation and supporting economic recovery.
The Monetary Policy Rate remains a key tool used by the CBN to regulate lending conditions, liquidity levels, and overall economic stability. While higher interest rates help curb inflation, they also increase borrowing costs for businesses and households, a concern repeatedly raised by private sector operators.
