Central_Bank_of_Nigeria retains MPR at 26.5%

The Monetary Policy Committee (MPC) of the Nigeria — Central Bank of Nigeria>>> (CBN), led by Governor Yemi Cardoso>>>, decided to retain the Monetary Policy Rate (MPR) at 26.5 percent during its 305th meeting on May 19-20, 2026. Other key policy parameters, including the asymmetric corridor around the MPR (+500/-100 basis points), Cash Reserve Ratio (CRR) for commercial banks (45 percent), merchant banks (16 percent), and non-TSA public sector deposits (75 percent), and the liquidity ratio (30 percent), were also maintained. The decision was based on a comprehensive assessment of global and domestic economic risks, with the MPC recognizing the transitory nature of recent inflation increases, largely due to external shocks like the Middle East crisis. The Nigeria — Central Bank of Nigeria>>> expressed confidence that prior policy reforms, such as exchange rate stability, improved external reserve buffers (reaching $49.49 billion), strengthened monetary policy transmission, a well-capitalized banking system, and ongoing fiscal consolidation, have mitigated the impact of global shocks on the Nigerian economy. The successful conclusion of the banking recapitalization exercise and a recent sovereign rating upgrade further reinforced confidence in Nigeria>>>'s economic trajectory.