CBN interest rate cut to 26.50% as Governor Olayemi Cardoso announces 50 basis points reduction after MPC meeting

The Central Bank of Nigeria has reduced the Monetary Policy Rate by 50 basis points to 26.50 per cent from 27 per cent, marking its first rate cut in months.

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CBN Governor Olayemi Cardoso announced the decision on Tuesday during a press briefing following the bank’s 304th Monetary Policy Committee meeting.

Cardoso said the resolution was unanimously adopted by all MPC members.

“The committee decided to reduce the monetary policy rate by 50 basis points to 26.50 per cent,” Cardoso stated.

Despite the rate cut, the committee retained key monetary parameters.

The Cash Reserve Ratio remains at 45 per cent for commercial banks and 16 per cent for merchant banks, while the 75 per cent CRR on non-TSA public sector deposits was also maintained.

The liquidity ratio was left unchanged at 30 per cent, and the standing facilities corridor was adjusted to plus 50 and minus 450 basis points around the monetary policy rate.

The latest CBN interest rate cut follows the MPC’s decision in November 2025 to hold the benchmark rate at 27 per cent. The previous adjustment occurred in September last year.

Meanwhile, data from the National Bureau of Statistics show that inflation eased to 15.10 per cent in January, down slightly from 15.15 per cent in the preceding month, a development analysts say may have influenced the committee’s decision.