CBN retains MPR at 26.5%, eyes single-digit inflation

The Central Bank of Nigeria (CBN) has retained its benchmark Monetary Policy Rate (MPR) at 26.5 percent, signaling a steady monetary stance as it balances domestic economic momentum against lingering global uncertainty.

The decision was announced by CBN Governor Olayemi Cardoso following the conclusion of the 306th meeting of the Monetary Policy Committee (MPC) in Abuja.

Along with the benchmark rate, the committee maintained all existing policy parameters.

The Standing Facilities Corridor was retained at +50 and -450 basis points around the MPR, while the Cash Reserve Ratio was retained at 45 percent for Deposit Money Banks, 16 percent for Merchant Banks, and 75 percent for non-TSA public sector deposits.

The committee revealed that the apex bank will be focusing on price and financial system stability.

The committee reaffirmed its commitment to preserving macroeconomic stability while remaining prepared to take appropriate policy measures to moderate inflation and restore it to a single-digit trajectory over the medium term.

Speaking, Cardoso emphasized that despite heightened global risks, the Nigerian economy stays on a resilient growth path, supported by improved crude oil production, favorable PMI expansions, and structural gains from ongoing economic reforms.

The Governor also highlighted key developments across the broader financial ecosystem, praising the success of the banking sector recapitalisation exercise for strengthening systemic resilience.

He noted that recent supervisory interventions concerning 46 Microfinance Banks were essential regulatory steps taken strictly to address compliance infractions and protect depositors’ funds.

Addressing foreign exchange dynamics, Governor Cardoso reaffirmed the central bank’s dedication to a transparent, liquid, and market-driven system operating on willing-buyer, willing-seller principles.

He explained that exchange rate outcomes will continue to reflect market fundamentals to sustain investor confidence over the long term.

To enhance monetary policy transmission, he revealed that the CBN introduced the Nigeria Overnight Financing Rate (NOFR), a new tool designed to reflect actual overnight secured funding transactions between banks and support the broader inflation-targeting framework.

On the payments front, he clarified recent misconceptions by confirming that both standard and commemorative ₦100 notes remain valid legal tender.

Closing his remarks, Governor Cardoso attributed the apex bank’s recognition as the 2026 Central Banking Award winner to the dedication of CBN staff and management, adding that international accolades reinforce the global credibility of Nigeria’s ongoing economic reforms.