The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR), its benchmark interest rate, at 26.5 per cent.
CBN Governor Olayemi Cardoso announced the decision on Tuesday after the conclusion of the 306th Monetary Policy Committee (MPC) meeting, held in Abuja from July 20 to July 21.
“The committee decided as follows: retain the Monetary Policy Rate at 26.5 per cent,” Cardoso said while addressing journalists after the meeting.
The decision marks the second consecutive time the MPC has left the benchmark rate unchanged, following a 50-basis-point cut in February that reduced the MPR from 27 per cent to 26.5 per cent.
Explaining the committee’s decision, Cardoso said the MPC carefully evaluated prevailing economic conditions before opting to maintain its current monetary policy stance.
“The committee’s decision to maintain the current policy stance follows a thorough assessment of the balance of risks. Although headline inflation moderated marginally in June 2026, global uncertainties have heightened, mainly due to renewed hostilities in the Middle East,” he said.
The MPC also adjusted the asymmetric corridor around the MPR to +50/-450 basis points, a move designed to discourage banks from parking excess funds with the CBN while encouraging increased lending to the real sector of the economy.
In addition, the committee retained the Cash Reserve Ratio (CRR) for commercial banks at 45 per cent, maintained the CRR for merchant banks at 16 per cent, and left the CRR on non-Treasury Single Account (non-TSA) public-sector deposits unchanged at 75 per cent for liquidity management purposes.
Cardoso said the Nigerian economy had remained largely resilient despite ongoing global economic uncertainties and external shocks.
The MPC’s decision comes days after the National Bureau of Statistics (NBS) reported that Nigeria’s headline inflation eased slightly to 15.91 per cent in June 2026, compared with 15.93 per cent recorded in May.
