CBN retains interest rate at 26.5% as inflation edges higher

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 26.5% following the conclusion of its 305th meeting attended by all 11 members.

Announcing the decision at the end of the two day meeting held on 19 and 20 May, the CBN Governor, Olayemi Cardoso, said the committee also retained the Standing Facilities Corridor around the MPR at +50 and -450 basis points.

Other key monetary parameters were left unchanged, reflecting the committee’s cautious approach to managing inflation and preserving macroeconomic stability.

Under the decision, the Cash Reserve Requirement (CRR) remains at 45% for Deposit Money Banks, 16% for Merchant Banks and 75% for non TSA public sector deposits. The Liquidity Ratio was also maintained at 30%.

According to the CBN, the decision to leave rates unchanged was informed by persistent inflationary pressure and the need to sustain macroeconomic stability.

The committee’s decision comes amid a fresh uptick in inflation. Data released by the National Bureau of Statistics showed that Nigeria’s headline inflation rate rose to 15.69% in April 2026 from 15.38% recorded in March, representing an increase of 0.31 percentage points.

The MPC noted the consecutive rise in inflation recorded in March and April, despite earlier signs of moderation in price growth.

At its 304th meeting in February 2026, the committee reduced the benchmark rate by 50 basis points from 27% to 26.5%, marking the first cut after a prolonged period of monetary tightening. At the time, the Standing Facilities Corridor and Liquidity Ratio were also retained.

The latest decision signals that the CBN remains focused on containing inflation while monitoring the effects of elevated borrowing costs on businesses, exchange rate stability and overall economic growth.