The Central Bank of Nigeria has reduced the Monetary Policy Rate by 50 basis points to 26.5 per cent from 27 per cent. The decision was taken at the 304th meeting of the Monetary Policy Committee in Abuja and announced by Governor Olayemi Cardoso. The rate cut marks the first easing move after a prolonged period of monetary tightening aimed at curbing inflation and stabilising the naira.
The MPC said the decision was supported by sustained improvements in macroeconomic indicators, with headline inflation declining for the eleventh consecutive month to 15.1 per cent in January 2026. While lowering the benchmark rate, the committee retained the Cash Reserve Ratio at 45 per cent for commercial banks and 16 per cent for merchant banks, maintained the Liquidity Ratio at 30 per cent, and kept the Standing Facilities Corridor at +50 and -450 basis points around the MPR.
Analysts had been divided ahead of the meeting, reflecting uncertainty over the pace of easing. The retention of other policy parameters signals a cautious approach, suggesting the apex bank intends to support growth while preserving financial system stability.
