adsThe Central Bank of Nigeria’s decision to retain interest rates at 26.5 percent reflects growing confidence among policymakers that earlier monetary tightening measures are beginning to deliver results, particularly as core inflation and month-on-month price pressures show signs of moderation despite renewed global shocks.
At the end of its 305th Monetary Policy Committee (MPC) meeting held on May 19 and 20, 2026, the members voted to leave all policy parameters unchanged, arguing that recent inflationary pressures driven by the Middle East crisis are likely temporary and that broader macroeconomic conditions remain supportive of a return to disinflation.
The committee retained the Monetary Policy Rate (MPR) at 26.5 percent, kept the Standing Facilities Corridor around the benchmark rate at +50/-450 basis points, and maintained the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45 percent, Merchant Banks at 16 percent, and non-TSA public sector deposits at 75 percent.
Olayemi Cardoso, governor of the CBN who announced the outcome of the MPC meeting during a press conference in Abuja said the hold decision came against the backdrop of renewed global inflation risks triggered by escalating geopolitical tensions in the Middle East, which have pushed up energy prices, transportation costs and supply chain expenses globally.
