CBN maintains tight monetary stance at 26.5%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR), otherwise known as the benchmark interest rate, at 26.5 per cent.

The CBN Governor, Olayemi Cardoso, announced the decision on Wednesday while briefing journalists at the end of the 305th MPC meeting held in Abuja.

He said the committee also maintained the asymmetric corridor around the MPR at +50 and -450 basis points, leaving monetary policy parameters unchanged despite recent inflationary pressures.

According to the governor, the Cash Reserve Ratio (CRR) was also retained at 45 per cent for commercial banks, while merchant banks remain at 16 per cent. The CRR for non-TSA public sector deposits was kept at 75 per cent.

Explaining the rationale behind the decision, Cardoso said the committee conducted a comprehensive review of global and domestic economic conditions before arriving at the stance.

“The decision to retain was anchored on comprehensive assessment of risks to both global and domestic outlook, as the Committee notes that although inflation increased in the last two months due to global shocks, MPC has recognised its transitory nature and is confident that the macroeconomic environment will support a return to disinflation,” he said.

He added that 11 members of the committee were in attendance at the meeting.

The decision signals continued caution by monetary authorities as Nigeria navigates inflationary pressures, exchange rate adjustments, and broader macroeconomic uncertainties.