In a bold shift from its aggressive tightening stance, the CBN retains its benchmark lending rate at 26.5% to foster economic stability.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to maintain its current policy trajectory, choosing to hold the benchmark interest rate steady during its 305th meeting on Wednesday.
In a strategic move, the committee voted to retain the Monetary Policy Rate (MPR) at 26.5 per cent, marking a significant and deliberate shift from its previously aggressive monetary tightening stance that had been heavily driven by a strict inflation-targeting posture over recent months.
Presenting the official communique after the meeting, CBN Governor Yemi Cardoso outlined the committee’s unanimous decision to keep all other key regulatory parameters unchanged alongside the main lending rate.
As part of this stabilization strategy, the apex bank retains the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks, 16 per cent for merchant banks, and 75 per cent for non-TSA public sector deposits.
Furthermore, the liquidity framework remains anchored as the Standing Facilities Corridor was also retained at +50 / -450 basis points around the MPR, signaling a cautious pause by policymakers to evaluate the impact of previous interventions on the broader Nigerian economy.
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