CBN Holds MPR at 26.5% After May MPC Meeting

The Monetary Policy Committee of the Central Bank of Nigeria has kept the Monetary Policy Rate at 26.5% after its 305th meeting in Abuja.

The meeting held on May 19 and 20, 2026, and was attended by 11 members of the committee.

CBN Governor Olayemi Cardoso announced the decision at the end of the two-day session.

He said the committee also kept the Standing Facilities Corridor around the MPR at +50/-450 basis points.

The Cash Reserve Requirement for Deposit Money Banks stayed at 45.00%, while Merchant Banks remained at 16.00%.

The committee also kept the CRR for non-TSA public sector deposits at 75.00%.

Why The MPC Held Back

The CBN said it chose to keep all major policy settings unchanged because inflation is still a concern.

Recent data from the National Bureau of Statistics showed that Nigeria’s headline inflation rose to 15.69% in April 2026 from 15.38% in March.

That 0.31 percentage point rise came after earlier signs of easing, showing that price pressure is still not fully under control.

The MPC said it wanted to protect macroeconomic stability while watching how inflation develops in the coming months.

For businesses and borrowers, the decision means lending conditions are likely to remain tight for now.

What The Decision Means

The hold also follows the MPC’s February 2026 meeting, when it cut the MPR by 50 basis points from 27% to 26.5%.

That February decision was the first rate cut after a long stretch of tightening meant to slow inflation.

The Liquidity Ratio was also left at 30% in February, and the Standing Facilities Corridor was kept at +50/-450 basis points.

With May’s decision, the CBN has sent a clear signal that it is not ready to ease further while inflation keeps rising.

The central bank is still trying to balance price control, exchange-rate stability and economic growth.

That balancing act remains difficult because high borrowing costs can slow investment, even as weaker policy could make inflation worse.

The latest hold suggests the MPC wants more time to see whether recent inflation pressure is temporary or part of a longer trend.

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