By Oluwakemi Kindness
The Central Bank of Nigeria has retained the benchmark interest rate at 26.5 percent as authorities continue efforts to rein in inflation and stabilise the economy.
The decision was announced on Wednesday by the CBN Governor, Olayemi Cardoso, after the 305th meeting of the Monetary Policy Committee in Abuja.
Cardoso said all key monetary policy parameters were left unchanged following deliberations by the 11-member committee, reflecting the apex bank’s cautious stance amid persistent inflationary pressures.
He said the asymmetric Corridor was retained at +50 and -450 basis points around the MPR.
The Cash Reserve Ratio was also left unchanged at 45 percent for Deposit Money Banks, 16 percent for Merchant Banks, and 75 percent for non-TSA public sector deposits.
According to the CBN Governor, the committee considered the recent rise in inflation and the need to sustain macroeconomic stability before arriving at the decision.
Latest figures released by the National Bureau of Statistics showed that Nigeria’s headline inflation increased to 15.69 percent in April 2026 from 15.38 percent recorded in March, extending the upward trend seen earlier in the year.
Cardoso said the MPC noted that despite earlier signs of moderation, inflationary pressures remain elevated, making it necessary to maintain a tight monetary policy stance.
The latest decision comes barely three months after the apex bank reduced the MPR from 27 percent to 26.5 percent in February 2026, the first rate cut after an extended cycle of aggressive tightening.
The CBN said it would continue to balance inflation control with exchange rate stability and broader economic recovery while closely monitoring the impact of high borrowing costs on businesses and economic growth.
