The Central Bank of Nigeria (CBN) has retained the country’s Monetary Policy Rate (MPR) at 26.5 per cent, maintaining its current monetary policy stance as policymakers continue efforts to balance inflation control with economic stability.
CBN Governor Olayemi Cardoso announced the decision on Tuesday while briefing journalists after the 306th Monetary Policy Committee (MPC) meeting held in Abuja between July 20 and July 21. According to Cardoso, the committee unanimously resolved to leave the benchmark interest rate unchanged.
“The committee decided as follows: retain the monetary policy rate at 26.5 per cent,” he stated during the post-meeting briefing.
The latest decision represents the second consecutive meeting in which the CBN MPR 26.5% has been maintained. The benchmark rate was previously reduced by 50 basis points from 27 per cent to 26.5 per cent during the committee’s February meeting.
Cardoso explained that the committee’s decision followed a careful assessment of prevailing domestic and global economic conditions.
He noted that although Nigeria recorded a slight moderation in headline inflation in June 2026, rising geopolitical tensions and renewed hostilities in the Middle East continue to pose significant risks to global economic stability. According to him, these external developments influenced the committee’s decision to maintain its current policy direction while closely monitoring future economic trends.
In addition to retaining the benchmark interest rate, the Monetary Policy Committee approved adjustments to several other monetary policy instruments. The committee revised the asymmetric corridor around the Monetary Policy Rate to +50/-450 basis points, a move intended to discourage commercial banks from parking excess liquidity with the Central Bank while encouraging increased lending to productive sectors of the economy.
The MPC also retained the Cash Reserve Ratio (CRR) for commercial banks at 45 per cent. Similarly, the CRR for merchant banks remains unchanged at 16 per cent, while the reserve requirement on non-Treasury Single Account (non-TSA) public-sector deposits was maintained at 75 per cent as part of the Bank’s liquidity management strategy.
Despite heightened geopolitical risks, Cardoso expressed confidence in the resilience of Nigeria’s economy. He said the country has continued to withstand external economic shocks, even as policymakers remain cautious about emerging global developments.
The decision to retain the CBN MPR 26.5% follows the latest inflation report released by the National Bureau of Statistics (NBS), which showed that Nigeria’s headline inflation eased slightly to 15.91 per cent in June 2026, compared with 15.93 per cent recorded in May. The modest decline in inflation, combined with ongoing global uncertainties, informed the committee’s decision to sustain its current monetary policy framework while monitoring future economic indicators.
