CBN Cuts Interest Rate to 26.50% After MPC Meeting

The Central Bank of Nigeria has reduced its benchmark interest rate, cutting the Monetary Policy Rate by 50 basis points to 26.50% from 27.00%.

CBN Governor Olayemi Cardoso announced the decision on Tuesday while briefing journalists after the bank’s 304th Monetary Policy Committee meeting. He said the vote was unanimous, with all MPC members agreeing to ease the policy rate.

Despite the reduction in the benchmark rate, the MPC left other key monetary settings unchanged. Cardoso said the committee retained the Cash Reserve Ratio at 45% for commercial banks and 16% for merchant banks. 

The 75% CRR on non-Treasury Single Account public sector deposits was also maintained. In addition, the liquidity ratio stayed at 30%.

On the standing facilities corridor, the apex bank adjusted the band around the new policy rate to +50 and minus 450 basis points relative to the MPR, a move that shapes the cost of borrowing and lending between banks and the central bank.

The decision marks a shift from the MPC’s last stance in November 2025, when it held the Monetary Policy Rate at 27.00%. 

The latest cut is also coming at a time when inflation has shown continued moderation, with Nigeria’s headline inflation rate easing slightly to 15.10% in January 2026 from 15.15% in December 2025, according to the National Bureau of Statistics.