CBN Holds Interest Rate at 26.5%, Labels Inflation “Transitory” After May MPC Meeting

The Central Bank of Nigeria’s Monetary Policy Committee met on May 19–20, 2026 and decided to keep the benchmark Monetary Policy Rate at 26.5%. All major policy parameters, including the standing facilities corridor and the 45% Cash Reserve Requirement, remain unchanged. Headline inflation rose to 15.69% in April, driven by higher food prices and external energy shocks. The MPC described this uptick as “transitory,” citing past policy reforms that have dampened the pass-through of global volatility. The group also praised the recent banking recapitalization, with 33 banks now showing stronger soundness. Real GDP grew by 4.0% in Q4 2025, led by industry, agriculture, services and a 6.8% gain in oil refining. Nigeria’s foreign reserves stand at $49.5 billion, covering over nine months of imports. The CBN noted minimal FX intervention last year and a deeper forex market. The next MPC meeting is set for July 20–21, 2026.

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