CBN Cuts Benchmark Interest Rate to 26.5% in MPC Meeting

During its 304th meeting held in Abuja, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria, led by Governor Olayemi Cardoso, decided to cut the monetary policy rate by 50 basis points from 27% to 26.5%. This marks the second rate cut under the current leadership, following a similar reduction in September 2025.

The MPC aims to support economic growth while ensuring price stability, as indicated by the ongoing disinflation trajectory and a decline in headline inflation to 15.10% in January 2026. The committee retained the cash reserve requirement at 45% for commercial banks.

Private sector leaders, including Adewal Oyerind, welcomed the rate cut as a cautious step towards supporting business margins, although they noted that the impact on lending rates may be gradual. The MPC's next meeting is scheduled for May 19-20, 2026, as they continue to navigate the balance between growth support and inflation control.