The Monetary Policy Committee (MPC) of the Central Bank of Nigeria has held its Monetary Policy Rate (MPR) at 26.5%.
This decision was reached at its 305th meeting where it also retained Cash Reserve Ratio (CRR) at 45% for Commercial Banks, 16% for Merchant Banks, and 75% for non-TSA public sector deposits.
Standing Facilities Corridor was also retained at +50 / -450 basis points around the MPR.
Significance of Hold
The Central Bank of Nigeria Monetary Policy Committee’s decision to retain the Monetary Policy Rate at 26.5% indicates that policymakers are maintaining a tight stance to ensure inflation continues to trend downward and to support stability in the foreign exchange market.
Nigeria’s inflation rate eased to 23.71% in April 2026, down from 24.23% in March, according to the National Bureau of Statistics. This moderation suggests that price pressures may be beginning to soften, although food, transportation and energy costs remain elevated and continue to weigh heavily on households and businesses.
By also keeping the Cash Reserve Ratio at 45% for commercial banks, 16% for merchant banks and 75% for non-TSA public sector deposits, the central bank is limiting the amount of liquidity available for lending, helping to curb inflationary pressures.
The decision to hold rates rather than raise them further provides some certainty to the market and suggests the MPC believes previous rate increases are beginning to take effect.
The decision reflects a cautious “wait-and-see” approach with the CBN prioritising inflation control and naira stability, while monitoring whether recent improvements in price data are sustained before considering any reduction in interest rates.
