The Central Bank of Nigeria (CBN) has retained the country’s Monetary Policy Rate (MPR) at 26.5 percent following the conclusion of the 305th Monetary Policy Committee (MPC) meeting held in Abuja.
Governor, Olayemi Cardoso, announced the decision after the two-day meeting, stating that the committee unanimously agreed to maintain the benchmark interest rate amid persistent inflationary pressures and global economic uncertainties.
According to the apex bank, the decision was aimed at sustaining monetary stability, moderating inflation, and preserving exchange rate stability within the Nigerian economy.
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The MPC also retained other key monetary parameters, including:
- Cash Reserve Ratio (CRR) for Deposit Money Banks at 45%
- CRR for Merchant Banks at 16%
- Liquidity Ratio at 30%
- Asymmetric corridor around the MPR at +500/-450 basis points.
The committee’s decision comes as Nigeria’s inflation rate rose slightly to 15.69 percent in April 2026 from 15.38 percent recorded in March, according to recent data from the National Bureau of Statistics (NBS).
Cardoso noted that while inflationary risks and external economic shocks remain concerns, ongoing monetary reforms and relative exchange rate stability have helped cushion the Nigerian economy.
What You Need To Know
- The MPR serves as Nigeria’s benchmark interest rate and influences lending rates across commercial banks.
- Higher interest rates are often used to combat inflation by reducing excess liquidity in the economy.
- Businesses and manufacturers have continued to express concerns over high borrowing costs affecting investments and production.
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Insight
The CBN’s decision signals a cautious monetary stance despite slowing inflation trends. By retaining rates, the apex bank appears focused on maintaining macroeconomic stability and protecting the naira against external vulnerabilities rather than aggressively stimulating growth.
Implications
The retention of the 26.5% MPR means borrowing costs for businesses and consumers may remain elevated in the short term. However, the move could help stabilize inflation expectations, support investor confidence, and sustain relative stability in the foreign exchange market.
Source: Nairametrics
