CBN Cuts Interest Rate to 26.5% Amid Easing Inflation

The Monetary Policy Committee of the Central Bank of Nigeria has reduced Nigeria’s benchmark interest rate to 26.5 percent. The decision was announced on Tuesday by the CBN Governor, Olayemi Cardoso, at the conclusion of the committee’s 304th meeting in Abuja.

Cardoso disclosed that the committee agreed to cut the Monetary Policy Rate by 50 basis points, citing recent macroeconomic indicators and moderating inflationary pressures. This marks the second rate cut under the current leadership of the apex bank.

The adjustment follows a similar 50-basis-point reduction implemented in September 2025, after which the MPC held rates steady at its November meeting. Analysts say the latest move reflects growing confidence in the stability of Nigeria’s economic outlook.

Nigeria’s headline inflation rate eased to 15.10 percent in January 2026, a development that likely influenced the committee’s decision. The easing inflation trend has provided room for monetary authorities to stimulate economic growth without triggering price instability.

Economic stakeholders are expected to closely monitor the impact of the rate cut on lending, investment flows, and overall economic performance in the coming months.