CBN retains monetary policy rate at 26.5%

By Damilare Adeleye

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria ( CBN) has retained the Monetary Policy Rate (MPR) at 26.5 per cent.

The decision was reached at the conclusion of the committee’s 305th meeting held on May 19 and 20, with all 11 members in attendance.

Speaking after the two-day meeting, Governor of the Central Bank of Nigeria, Olayemi Cardoso, said the committee unanimously agreed to hold all major monetary policy indicators at existing levels.

Cardoso stated that the MPC also retained the asymmetric corridor around the MPR at +500/-100 basis points, underscoring the apex bank’s commitment to sustaining current monetary tightening measures aimed at containing inflation and stabilising the economy.

The committee further resolved to leave the Cash Reserve Ratio (CRR) for Deposit Money Banks unchanged at 45 per cent, while the CRR for Merchant Banks was maintained at 16 per cent. In addition, the liquidity ratio was retained at 30 per cent.

The MPC also sustained the 75 per cent CRR on non-Treasury Single Account (non-TSA) public sector deposits.

The decision signals the central bank’s continued cautious approach as policymakers weigh inflationary trends, exchange rate stability, liquidity conditions and broader economic risks.