BREAKING: CBN Cuts Interest Rate to 23%

The Monetary Policy Committee of the Central Bank of Nigeria has reduced the Monetary Policy Rate from 26.5 per cent to 23 per cent. CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the conclusion of the committee’s 307th meeting in Abuja, saying the MPC had decided to “reset the monetary policy rate to 23 per cent.” The latest decision comes after the committee retained its benchmark rate at its two previous meetings, following a 50-basis-point reduction announced in February 2026. The 350-basis-point cut also comes against the backdrop of easing inflation in recent months, with the National Bureau of Statistics reporting that headline inflation declined marginally to 15.39 per cent in August 2026 from 15.43 per cent in July.

The latest inflation figure represents another decline after the rate had recorded three consecutive monthly increases, according to the report. The MPC’s decision therefore marks a fresh adjustment to the CBN’s monetary policy stance following the recent moderation in price pressures. The Monetary Policy Rate is the benchmark rate used by the central bank to influence borrowing and lending conditions across the economy. The CBN’s decision is expected to be closely watched by businesses, financial institutions, investors and consumers as the new rate takes effect. The committee’s move comes as policymakers continue to balance the need to maintain price stability with broader economic conditions.

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