Evaluating the CBN’s September 2026 Monetary Easing, Corridor Compression, and FPI Dynamics

Executive Summary

Following the 307th Monetary Policy Committee (MPC) meeting concluded on September 22, 2026, the Central Bank of Nigeria (CBN) announced a decisive 350-basis-point reduction in its benchmark Monetary Policy Rate (MPR), lowering it from 26.50% to 23.00%. Accompanied by a recalibration and narrowing of the standing facilities corridor from +50/450 bps to +50/-300 bps, the Standing Deposit Facility (SDF) rate was compressed to 20.00%, while the Standing Lending Facility (SLF) was set at 23.50%.