CBN retains key rates, backs gradual return to disinflation
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to retain the Monetary Policy Rate (MPR) at 26.5% following its 305th meeting.
The decision was reached at the latest MPC session, with 11 members in attendance.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced the decision on Wednesday at the conclusion of the Monetary Policy Committee’s 305th meeting in Abuja.
According to Cardoso, “The Committee resolved to retain the Monetary Policy Rate at 26.5 per cent.”
The decision follows a 50-basis-point reduction in February 2026 and a previous hold at the MPC briefing in November 2025.
He announced the MPC also retained the standing facilities corridor around the MPR at +500 to -450 basis points.
Also, the MPC voted to retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45%, for Merchant Banks at 16%, and for non-TSA public sector deposits at 75%.
Cardoso explained that the committee’s decision was based on what he described as a comprehensive assessment of economic risks and inflation trends.
According to the CBN governor, the committee acknowledged that inflation has increased slightly for two consecutive months but believes the rise was largely caused by external shocks and may only be temporary.
“The decisions of the MPC were anchored on a comprehensive assessment of risks to the outlook,” he said.
“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.”
By holding the benchmark interest rate and maintaining all other key policy parameters at their current levels, the apex bank signals a continued cautious stance on inflation management and overall macroeconomic stability.
