CBN Cuts Benchmark Interest Rate to 26.5% in First 2026 Easing Move
The Central Bank of Nigeria (CBN) has reduced its benchmark Monetary Policy Rate (MPR)—commonly referred to as the interest rate—from 27% to 26.5%, marking a 50 basis point cut. This decision was announced by CBN Governor Olayemi Cardoso at the conclusion of the 304th Monetary Policy Committee (MPC) meeting held in Abuja on February 23-24, 2026. This represents the first rate cut of 2026 and the lowest level since May 2024, signaling a cautious shift from the aggressive tightening cycle that has been in place for nearly two years. The move follows sustained disinflation, with headline inflation easing to 15.1% in January 2026 (its tenth consecutive monthly decline), improved exchange rate stability, enhanced food supply, and stronger external reserves (reportedly hitting around $50.4 billion in recent updates). Key Details from the MPC Decision Monetary Policy Rate (MPR): Reduced by 50 basis points to 26.5%. Other parameters retained: Cash Reserve Ratio (CRR) at 45% for commercial...