CBN Holds Interest Rate at 26.5%, Warns Global Tensions Could Stall Disinflation
By Aboki Forex —
The Central Bank of Nigeria retained interest rates on Wednesday, warning that global tensions and rising oil prices could derail disinflation efforts despite recent reforms. The Monetary Policy Committee decided to keep the Monetary Policy Rate at 26.5 per cent after its 305th meeting in Abuja.
CBN Governor Olayemi Cardoso announced the committee also held the standing facilities corridor at +50/-450 basis points. It retained the Cash Reserve Requirement for deposit money banks at 45 per cent, merchant banks at 16 per cent, and non-TSA public sector deposits at 75 per cent.
The hold marks a pause in the easing cycle that resumed in February 2026 when the MPC cut the MPR by 50 basis points. That cut followed 10 straight months of falling inflation and January headline inflation of 15.10 per cent.
While the apex bank maintains that inflationary pressures are temporary and the naira remains stable, analysts fear sustained shocks and elevated borrowing costs may hinder growth. The MPC reviewed rising risks to both the global and domestic economies before deciding to hold rates.
Cardoso said the decision was not merely to leave rates unchanged. It was a signal that the bank is no longer willing to treat Nigeria’s recent disinflation path as safe enough to justify another rate cut.