Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR), the country’s benchmark interest rate, at 26.5 per cent, maintaining its cautious monetary policy stance as it weighs persistent global economic risks and domestic inflation trends.
Gatekeepers News reports that the decision was announced on Tuesday by CBN Governor Olayemi Cardoso after the conclusion of the Monetary Policy Committee’s (MPC) 306th meeting in Abuja.
Cardoso said the MPC unanimously agreed to leave the benchmark rate unchanged, marking the second consecutive time in 2026 that the committee has maintained the rate at 26.5 per cent.
He explained that although inflation has shown signs of easing, heightened global uncertainties, particularly renewed geopolitical tensions in the Middle East, continue to pose risks to price stability and economic growth.
The committee also retained all other key monetary policy parameters, including the asymmetric corridor around the MPR at +50/-450 basis points, the Cash Reserve Ratio (CRR) at 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks, while the liquidity ratio remained unchanged.
According to the CBN Governor, maintaining the current policy stance will allow the apex bank to continue monitoring inflation, exchange rate stability and other macroeconomic indicators before making any further adjustments.
He noted that recent economic reforms by the fiscal and monetary authorities have helped strengthen Nigeria’s resilience against external shocks despite lingering global uncertainties.
Cardoso also disclosed that the era of regulatory forbearance for banks has ended, saying the policy introduced during the COVID-19 pandemic had served its purpose and was no longer necessary for assessing the health of the banking sector.
