Capital Market
CBN Retains Rate at 26.5%
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 26.5 per cent following the conclusion of its 305th meeting in Abuja.
The decision was announced by CBN Governor Olayemi Cardoso after the meeting, which had 11 members of the committee in attendance.
The committee also retained all other key monetary policy parameters, signalling a continued cautious stance as policymakers assess inflationary pressures and broader macroeconomic conditions.
The CBN said the decision was driven by persistent inflationary trends and the need to sustain macroeconomic stability in the economy.
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Headline inflation has remained elevated in recent months, with policymakers closely monitoring price movements and their implications for economic growth and purchasing power.
The Cash Reserve Ratio (CRR) was maintained at 45 per cent for commercial banks and 16 per cent for merchant banks, while the CRR on non-Treasury Single Account (TSA) public sector deposits remained at 75 per cent.
The Standing Facilities Corridor was also retained at +50/-450 basis points around the MPR, reflecting the bank’s continued tightening posture despite holding the benchmark rate steady.
The MPC noted recent inflation data, particularly successive increases recorded in March and April 2026, as part of its assessment of current economic conditions.
Nigeria’s inflation rate has continued to influence monetary policy direction, despite earlier signs of moderation in the first quarter of the year.
Headline inflation rose to 15.69 per cent in April 2026 from 15.38 per cent in March 2026, indicating sustained price pressures in the economy.
At its 304th meeting in February 2026, the MPC reduced the MPR by 50 basis points from 27 per cent to 26.5 per cent, marking the first rate cut after an extended tightening cycle.
The committee retained the Liquidity Ratio at 30 per cent during that meeting, alongside maintaining the Standing Facilities Corridor.
The latest decision reflects a balancing act by the apex bank between inflation control, exchange rate stability and the need to support broader economic recovery.
The CBN has maintained a restrictive monetary stance over the past year in response to inflationary pressures driven by food prices, exchange rate adjustments and structural supply constraints.
Despite holding rates steady, the central bank reiterated its commitment to using available policy tools to ensure stability in the financial system.
The MPC further observed that maintaining current policy settings would allow sufficient time to assess the impact of previous tightening measures on inflation and economic activity.
The committee also reviewed developments in the foreign exchange market, liquidity conditions, and fiscal policy coordination as part of its broader macroeconomic assessment.
The decision to maintain the policy rate aligns with expectations of continued caution as Nigeria navigates inflation management alongside efforts to support growth and investment.
The CBN said it remains focused on achieving price stability while ensuring that monetary policy supports sustainable economic growth in the medium term.
