By Charles IKE-OKOH
TUE FEB 24 2026-theGBJournal| The Central Bank of Nigeria (CBN) has trimmed its benchmark interest rate by 50 basis points to 26.50 per cent from 27.0 per cent, retained all other parameters, marking a pivotal shift in monetary policy after an extended cycle of aggressive tightening.
The asymmetric corridor around the MPR is retained at +50bps /-450bps. The Cash Reserve Ratio for Deposit Money Banks is retained 45.00%, while CRR for Merchant Banks was retained at 16.00%.
The apex bank also retained 75% CRR on Non-TSA Public Sector deposit and Liquidity ratio retained at 30.00%.
The decision signals a cautious pivot toward supporting growth as inflationary pressures show early signs of moderation.
The rate cut, announced at the conclusion of the Monetary Policy Committee (MPC) meeting today, reflects the apex bank’s balancing act between anchoring price stability and easing pressure on businesses grappling with elevated borrowing costs.
Analysts say the move suggests growing confidence within the committee that previous hikes have begun to temper liquidity and inflation expectations.
For businesses and households, the reduction could translate into slightly lower lending rates, improved credit conditions, and renewed optimism across key sectors of the economy.
Manufacturers and small enterprises, in particular, are expected to welcome the shift after months of navigating high financing costs.
Financial markets also are likely to interpret the decision as a measured, data-driven adjustment rather than a full-scale easing cycle. Bond yields could soften in response, while equities may gain on expectations of improved corporate earnings and stronger investment flows.
Still, the central bank faces a delicate road ahead. With exchange rate stability and inflation dynamics remaining closely watched, policymakers must ensure that easing does not undermine hard-won macroeconomic stability.
The latest decision underscores a strategic recalibration — one aimed at sustaining economic momentum without reigniting price pressures.
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