CBN eases benchmark interest rate to 26.5%

The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points to 26.5 per cent, signalling a slight shift in the country’s monetary policy stance.

CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the end of the Monetary Policy Committee (MPC) meeting, noting that all 11 members in attendance supported the adjustment.

The Monetary Policy Rate serves as the benchmark interest rate that influences lending and borrowing costs across the Nigerian economy.

Despite the rate cut, the committee resolved to retain other key monetary policy parameters. The Cash Reserve Ratio (CRR) was maintained at 45 per cent for commercial banks, 16 per cent for merchant banks, and 75 per cent for non-Treasury Single Account (non-TSA) public sector deposits, a move aimed at preserving existing liquidity conditions.

The MPC also retained the Liquidity Ratio at 30 per cent, while the Standing Facilities Corridor was kept at +50/-450 basis points around the MPR to support financial system stability and guide market operations.

The latest decision reflects the apex bank’s continued effort to balance inflation control with economic growth considerations.