CBN cuts Interest rate to 26.5%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria has lowered the country’s benchmark interest rate from 27 percent to 26.5 percent, marking a modest shift in its monetary policy stance.

CBN Governor Olayemi Cardoso announced the decision on Tuesday at the conclusion of the committee’s 304th meeting in Abuja.

The new Monetary Policy Rate (MPR) is the lowest recorded since May 2024, when the rate stood at 26.25 percent.

The half-percentage-point cut is expected to affect lending rates across the banking sector and may ease borrowing costs for businesses and households, depending on how commercial banks adjust their pricing.

The decision signals the apex bank’s response to evolving economic conditions, as policymakers weigh inflation trends, exchange rate stability and growth considerations.