CBN retains interest rate at 26.5%
The Central Bank of Nigeria has retained the Monetary Policy Rate (MPR) at 26.5per cent after the conclusion of the MPC’s 305th meeting in Abuja. CBN Governor Olayemi Cardoso announced the decision, noting that all other key monetary policy parameters were also left unchanged.
The apex bank said the decision reflects a cautious approach aimed at maintaining macroeconomic stability amid persistent inflationary pressures. The Cash Reserve Ratio (CRR) was retained at 45per cent for commercial banks and 16per cent for merchant banks, while the Standing Facilities Corridor remained at +50/-450 basis points around the MPR.
Inflation continues to shape monetary policy decisions in Nigeria. Headline inflation increased to 15.69per cent in April 2026 from 15.38per cent in March. This comes after the MPC reduced the MPR from 27per cent to 26.5% during its February 2026 meeting, marking the first rate cut after an extended tightening cycle.
Analysts had widely expected the CBN to maintain rates due to inflation risks, exchange-rate pressures, and global economic uncertainty. Experts speaking on Drinks and Mics also pointed to rising crude oil prices and geopolitical tensions in the Middle East as factors that could worsen imported inflation.
