The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 26.5 per cent following the conclusion of its 305th meeting.
The decision was announced by the Governor of the CBN, Olayemi Cardoso, at the end of the committee’s two-day meeting held on May 19 and 20.
According to Cardoso, the committee also retained the Standing Facilities Corridor around the MPR at +50/-450 basis points.
The MPC maintained all key monetary policy parameters at their current levels, reflecting a cautious approach aimed at controlling inflation and sustaining macroeconomic stability.
Under the decision, the Cash Reserve Requirement (CRR) for Deposit Money Banks remains at 45.00 per cent, while Merchant Banks retain a CRR of 16.00 per cent. The CRR for non-TSA public sector deposits was also retained at 75.00 per cent.
The CBN said the decision to hold rates steady was influenced by persistent inflationary pressures and the need to preserve stability within the economy.
The MPC’s latest decision comes amid a fresh increase in Nigeria’s inflation rate.
According to the recent Consumer Price Index report released by the National Bureau of Statistics, the country’s headline inflation rate rose to 15.69 per cent in April 2026 from 15.38 per cent in March 2026, representing a 0.31 percentage point increase.
The committee acknowledged the recent rise in inflation figures, particularly the consecutive increases recorded in March and April 2026.
Nigeria’s inflation trend has remained a major factor shaping monetary policy decisions in recent months despite earlier signs of moderation.
At its 304th meeting in February 2026, the MPC reduced the MPR by 50 basis points from 27 per cent to 26.5 per cent, marking the first rate cut after a prolonged monetary tightening cycle.
During that meeting, the committee also retained the Liquidity Ratio at 30 per cent and maintained the Standing Facilities Corridor at +50/-450 basis points around the MPR.
The CBN has continued to balance efforts to curb inflation with policies aimed at supporting exchange-rate stability and broader economic recovery.
The latest decision to retain rates indicates that the MPC remains focused on controlling inflation while monitoring the impact of elevated borrowing costs on businesses and economic growth.
