The Monetary Policy Committee (MPC) of the Central Bank of Nigeria 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 on Tuesday by Olayemi Cardoso, Governor of the CBN, after the meeting attended by all 11 MPC members.
The committee also retained all other key monetary policy parameters, signalling a cautious approach as policymakers continue to monitor inflationary pressures and broader macroeconomic conditions.
According to the apex bank, the decision to keep rates unchanged was driven by persistent inflation concerns and the need to sustain macroeconomic stability.
Under the latest policy decisions:
- The Cash Reserve Ratio (CRR) was retained at 45 per cent for commercial banks and 16 per cent for merchant banks.
- The Standing Facilities Corridor remained at +50/-450 basis points around the MPR.
- The CRR on non-TSA public sector deposits was also retained at 75 per cent.
The MPC noted recent increases in inflation figures, particularly the consecutive rises recorded in March and April 2026.
Nigeria’s headline inflation rate rose to 15.69 per cent in April 2026, up from 15.38 per cent recorded in March, reinforcing concerns about price stability and imported inflation risks.
At its 304th meeting in February 2026, the MPC had reduced the MPR by 50 basis points from 27 per cent to 26.5 per cent, marking the first rate cut after a prolonged cycle of monetary tightening. The committee, however, chose to maintain the Liquidity Ratio at 30 per cent and retain the Standing Facilities Corridor at +50/-450 basis points around the MPR.
The CBN has continued to balance efforts to curb inflation with the need to support exchange-rate stability and broader economic recovery.
Analysts had widely expected the apex bank to maintain the benchmark interest rate amid lingering domestic and global economic uncertainties. Financial experts who spoke on Nairametrics’ “Drinks and Mics” podcast cited inflationary pressures, exchange-rate concerns, and geopolitical tensions as key reasons behind expectations for a hold decision.
The recent rise in global crude oil prices and renewed tensions in the Middle East have also heightened fears of imported inflation, prompting expectations that the CBN would maintain a cautious policy stance.
Market participants believe the MPC is carefully assessing the impact of previous tightening measures on inflation, business activity, and economic growth before considering any further policy adjustments.
The Monetary Policy Rate serves as the benchmark interest rate used by the CBN to influence lending rates, liquidity conditions, inflation, and overall macroeconomic stability. Higher interest rates typically increase borrowing costs for businesses and consumers, although they can also help moderate inflationary pressures.
Nigeria’s business community has repeatedly expressed concerns about elevated borrowing costs and their effect on investment, expansion, and overall economic activity, even as inflation remains one of the central policy challenges facing the country.
