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The Monetary Policy Committee (MPC) of the Central Bank of Nigeria has voted to retain the Monetary Policy Rate (MPR) at 26.5% following its 305th meeting, which recorded the attendance of 11 members.
The Governor of the Central Bank, Olayemi Cardoso, who spoke at the end of the committee two day meeting on May 19 and 20, said the committee retained the Standing Facilities Corridor around the MPR at +50/-450 basis points.
The committee maintained all key policy parameters at their current levels, signalling a continued cautious stance on inflation management and broader macroeconomic stability.
Cash Reserve Requirement (CRR) for Deposit Money Banks was retained at 45.00 per cent, Merchant Banks at 16.00 per cent, and 75.00 per cent for non-TSA public sector deposits.
The CBN said the decision to hold rates steady was influenced by persistent inflationary pressures and the need to sustain macroeconomic stability.
The MPC’s decision to retain rates occurred after an 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 rose marginally to 15.69 per cent in April 2026 from 15.38 per cent in March 2026, representing a 0.31 percentage point increase.
The CBN committee noted the recent rise in inflation figures, particularly the back-to-back increases recorded in March and April 2026.
Nigeria’s inflation rate has continued to shape monetary policy decisions in recent months despite signs of moderation earlier in the year.
Nigeria’s headline inflation rate rose to 15.69% in April 2026 from 15.38% recorded in March 2026.
At its 304th meeting in February 2026, the MPC reduced the MPR by 50 basis points from 27% to 26.5%, marking the first rate cut after an extended tightening cycle. The Liquidity Ratio was retained at 30% during the February meeting. The Standing Facilities Corridor was also maintained at +50/-450 basis points around the MPR.
The CBN has continued to balance inflation control with efforts to support exchange-rate stability and broader economic recovery.
The decision to hold rates steady suggests that the MPC remains focused on containing inflation while monitoring the broader impact of high borrowing costs on businesses and economic growth.
