The Central Bank of Nigeria has kept its benchmark interest rate unchanged at 26.5% following the 305th Monetary Policy Committee meeting in Abuja on May 20, 2026. Governor Olayemi Cardoso said the decision reflects a cautious stance to anchor inflation expectations and safeguard macroeconomic stability.
All 11 MPC members voted to hold the Monetary Policy Rate, the asymmetric corridor at +50/-450 basis points, the Cash Reserve Ratio at 45% for deposit money banks and 16% for merchant banks, and the liquidity ratio at 30%. The move comes after the CBN cut the rate by 50 basis points to 26.5% in February, its first reduction in several months.
The decision follows a marginal rise in headline inflation to 15.69% in April from 15.38% in March, driven by higher fuel and food prices linked to the Middle East conflict. Cardoso noted that while inflationary pressures remain, the committee expects them to be temporary and believes the current macroeconomic environment can support a return to disinflation.
Analysts had widely expected the hold, citing ongoing inflationary pressures, exchange rate sensitivity, and global uncertainties. The CBN maintained that borrowing costs will stay elevated to limit excess money supply, while savers could continue to benefit from higher deposit returns.
