By Editor
The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR), also known as the benchmark interest rate, from 26.5 per cent to 23 per cent. The decision was announced on Tuesday following the conclusion of the Monetary Policy Committee’s (MPC) 307th meeting in Abuja.
CBN Governor and Chairman of the MPC, Olayemi Cardoso, announced the decision at a news conference after the meeting. The latest decision represents a 350-basis-point reduction in the benchmark rate, marking a significant change from the rate maintained at the committee’s previous meeting in July.
At its 306th meeting held in July 2026, the MPC had retained the MPR at 26.5 per cent, alongside other key monetary policy parameters. The committee had cited prevailing economic conditions, including inflationary pressures and the need to maintain macroeconomic stability, in its decision to keep the rate unchanged at the time.
The reduction to 23 per cent lowers the CBN’s benchmark rate and is expected to influence borrowing costs and liquidity conditions across the financial system. However, the actual effect on lending rates to businesses and consumers will depend on how commercial banks and other financial institutions transmit the change through their lending and deposit rates.
The decision comes as the CBN continues to pursue its mandate of maintaining monetary and price stability while supporting economic activity. Cardoso said the new rate was part of the committee’s latest policy decisions reached at its 307th meeting. Further details of the MPC’s decision and its assessment of inflation, economic growth and other indicators are expected to be contained in the committee’s communiqué.
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