CBN Lowers Interest Rate to 26.5% in Latest MPC Meeting

During the 304th Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday, the Central Bank of Nigeria (CBN) announced a reduction in the monetary policy rate (MPR) by 50 basis points, bringing it down to 26.5% from 27%. CBN Governor Mr.

Olayemi Cardoso led the 11-member committee in this decision, which aims to manage inflation and maintain macroeconomic stability. This rate cut is significant as it represents the lowest benchmark rate since May 2024, when it was at 26.25%.

The MPC noted that the decision was driven by sustained improvements in macroeconomic indicators, particularly a decline in headline inflation for the eleventh consecutive month, which stood at 15.1% in January 2026. While some market analysts expressed divided opinions on the rate cut, the committee's cautious stance reflects a gradual approach to monetary easing amid stabilizing liquidity conditions and a downward trend in inflation.