CBN cuts interest rate to 26.50%

The Central Bank of Nigeria has cut the interest rate by 50 basis points to 26.50% from 27%

The CBN Governor, Olayemi Cardoso, at the just concluded Monetary Policy Committee (MPC) meeting said all members of the MPC unanimously agreed upon the decision.

The liquidity ratio was maintained at 30 percent, and the standing facilities corridor was adjusted to +50 to -450 basis points around the monetary policy rate.

The committee retained the Cash Reserve Ratio (CRR) at 45 percent for commercial banks and 16 percent for merchant banks, while the 75 percent CRR on non-TSA public sector deposits was equally maintained.

The CBN Governor stated thus:

“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 lad transmission of previous monetary tightening, sustained exchange rate stability and enhanced food supply.

“In reaching this policy decision, the committee took into account, the sustained deceleration in 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 effect of the contractionary monetary policy, stability in the foreign exchange market, robust capital inflows and improvements in the balance of payments.

“The momentum was further reinforced by relative stability in the prices of petroleum products and improved food supply conditions, especially staples. These outcomes have indicated that prior tightening has continued to anchor expectations.”