Businesses, Economists Back CBN’s Decision to Retain 26.5% Interest Rate

Businesses, economists, and financial market analysts have expressed support for the Central Bank of Nigeria’s (CBN) decision to retain the Monetary Policy Rate (MPR) at 26.5%, describing the move as a cautious approach to tackling inflation and preserving macroeconomic stability.
The decision was announced after the Monetary Policy Committee (MPC) concluded its meeting, marking the second consecutive time the benchmark interest rate has been left unchanged. The committee cited persistent inflationary pressures, global geopolitical tensions, exchange rate uncertainties, and external economic risks as key reasons for maintaining the current rate.
Stakeholders noted that keeping the policy rate steady would help sustain investor confidence, stabilize the foreign exchange market, and consolidate recent gains in the fight against inflation. They argued that while high borrowing costs remain a challenge for businesses, a premature rate cut could reverse progress made in curbing price increases.
However, some manufacturers and small business operators urged the CBN to consider easing monetary policy once inflation shows a sustained decline, saying lower interest rates would improve access to credit, boost investment, and stimulate economic growth.
The MPC reiterated that it will continue to monitor domestic and global economic developments and remains committed to taking appropriate measures to achieve price stability while supporting sustainable economic growth.