The Central Bank of Nigeria (CBN) has retained its benchmark interest rate at 26.5 per cent, reinforcing efforts to stabilise inflation, exchange rate pressures, and broader macroeconomic conditions.
Governor Olayemi Cardoso announced the decision on Wednesday at the conclusion of the 305th Monetary Policy Committee (MPC) meeting in Abuja. He disclosed that members unanimously agreed to hold all major monetary parameters, reflecting a cautious stance amid persistent inflation and global economic uncertainties.
According to the MPC communiqué, the Monetary Policy Rate (MPR) was kept at 26.5 per cent. The Cash Reserve Ratio (CRR) remains 45 per cent for commercial banks and 16 per cent for merchant banks, while non-Treasury Single Account public sector deposits stay at 75 per cent. The asymmetric corridor around the MPR was also retained at +50 and -450 basis points.
The decision underscores the apex bank’s commitment to consolidating recent monetary tightening measures aimed at taming inflation and stabilising Nigeria’s financial markets.
Since assuming office, Cardoso has maintained an aggressive tightening stance, repeatedly raising rates to curb inflation and restore investor confidence. The retention of the benchmark rate is expected to influence lending rates, borrowing costs, investment decisions, and overall liquidity in the banking sector.
Economic experts suggest the MPC’s latest move reflects growing concerns over balancing inflation control with the need to support economic productivity and private sector growth.