The Central Bank of Nigeria (CBN), yesterday, reduced the Monetary Policy Rate (MPR), the benchmark interest rate by 50 basis points from 27 per cent to 26.5 per cent.The Governor of the CBN, Mr. Olayemi Cardoso, disclosed this at the end of the 304th meeting of the Monetary Policy Committee (MPC) in Abuja
According to him, the bank also retained the standing facilities corridor at +50 to -450 basis points and kept the Cash Reserve Requirements, CRR unchanged (deposit money banks 45%, merchant banks 16%, and 75% for non TSA public sector deposits).
Cardoso explained, “The committee’s decision was premised on a balanced evaluation of risk to the outlook, which suggests that the ongoing disinflation trajectory would continue, largely supported by the transmission of previous monetary tightening, sustained exchange rate stability and enhanced food supply.”
He added that the committee took into account the sustained deceleration of the year-on-year, headline inflation in January 2026 marking the 11th consecutive month of decline.
“This downward trajectory in inflation was driven mainly by the continued effects of the contractionary monetary policy, stability in the foreign exchange market, robust capital inflows and improvement in the balance of payments,” he said According to him, the momentum was further reinforced by relative stability in the prices of petroleum products and improved food supply conditions, especially staples.
His words, “These outcomes have indicated that prior tightening has continued to anchor expectations.“The MPC particularly noted the remarkable performance of Nigeria’s external sector, evidenced by the robust accretion to foreign exchange reserves, supported by higher export earnings and increased remittance inflows and this has contributed to greater stability in the foreign exchange market and bolstered investor confidence