CBN Keeps Interest Rate at 26.5% Amid Inflation Pressures
The Central Bank of Nigeria has maintained its benchmark Monetary Policy Rate (MPR) at 26.50 percent, keeping borrowing costs unchanged across the economy as inflationary pressures persist.
The decision was announced by CBN Governor, Olayemi Cardoso, after the 305th Monetary Policy Committee (MPC) meeting held in Abuja on Wednesday. He explained that the decision was reached unanimously by all committee members.
Alongside the MPR, the committee also retained other key policy parameters. The Cash Reserve Ratio (CRR) remains at 45 percent for commercial banks and 16 percent for merchant banks, while the 75 percent CRR on non-TSA public sector deposits was also maintained. The liquidity ratio stayed at 30 percent, and the standing facilities corridor was adjusted to +50/-450 basis points around the benchmark rate.
Cardoso noted that the stance was aimed at sustaining recent macroeconomic stability gains while still containing inflationary risks.
The decision comes despite rising public pressure for a reduction in interest rates. A recent CBN survey showed that many Nigerians favour a cut in the MPR to ease borrowing costs for businesses and households.
Inflation, however, continues to trend upward, with figures rising to 15.69 percent in April from 15.38 percent in March, adding complexity to the policy environment.
The latest decision follows a previous 50 basis point cut at the MPC’s 304th meeting in February 2026, signalling that the apex bank is now taking a more cautious approach as it balances growth concerns with price stability.
