CBN slashes benchmark interest rate to 23%

Etim Ekpimah

The Central Bank of Nigeria has cut its benchmark interest rate by 3.5 percentage points to 23 per cent, signalling a significant shift in its monetary policy stance as inflation continues to ease.

CBN Governor, Olayemi Cardoso, announced the decision on Tuesday after the Monetary Policy Committee’s 307th meeting in Abuja.

“The Committee decided as follows: reset the monetary policy rate to 23 per cent,” Cardoso said.

The latest cut brings the Monetary Policy Rate down from 26.5 per cent, where it had remained through the MPC’s two previous meetings.

It also represents the second rate reduction in 2026, following a 50-basis-point cut announced in February.

The decision comes against the backdrop of a gradual decline in inflation. The latest Consumer Price Index released by the National Bureau of Statistics showed headline inflation easing marginally to 15.39 per cent in August from 15.43 per cent in July.

The August figure marked the third consecutive monthly decline in inflation after three months of increases.

The MPC’s latest decision therefore comes as the committee responds to the changing inflationary environment after keeping the benchmark rate unchanged at its two previous meetings.