The Central Bank of Nigeria (CBN) has decided to keep its benchmark interest rate unchanged at 26.5%, signaling a continued cautious approach as the country battles inflationary pressures and broader economic uncertainties.
The decision was reached during the 305th meeting of the Monetary Policy Committee (MPC), chaired by the CBN Governor, Olayemi Cardoso, with 11 members in attendance in Abuja.
Announcing the outcome, Cardoso confirmed that the committee voted unanimously to retain all key policy parameters, including the Monetary Policy Rate (MPR), the Cash Reserve Ratio (CRR), and the liquidity corridor for lending and borrowing.
According to him, the MPC carefully reviewed recent economic data and concluded that while inflation has risen slightly for two consecutive months, the increase is largely driven by external shocks and may not be permanent.
The committee maintained confidence that the broader macroeconomic environment still supports a gradual return to disinflation, even though price pressures remain a concern for households and businesses.
Key policy settings were left unchanged: the CRR remains at 45% for commercial banks, 16% for merchant banks, and 75% for public sector deposits. The standing lending and deposit facility corridor was also retained.
Analysts say the decision reflects the CBN’s attempt to strike a balance between controlling inflation and avoiding additional strain on economic growth, especially at a time when businesses are already facing high borrowing costs.
In simple terms, the message from the apex bank is clear: stability first, aggressive changes later—while the economy continues to adjust to ongoing reforms and global pressures.