Monetary Policy Committee keeps benchmark lending rate unchanged despite easing inflation and resilient economic indicators.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the country’s benchmark interest rate, the Monetary Policy Rate (MPR), at 26.5 per cent amid growing global economic uncertainties.
The decision was announced on Tuesday by the Governor of the CBN, Olayemi Cardoso, at the end of the 306th MPC meeting held in Abuja from July 20 to 21, 2026.
Cardoso said the committee unanimously agreed to maintain the current monetary policy stance after reviewing domestic economic conditions and emerging global risks, particularly renewed tensions in the Middle East that could impact energy prices and inflation.
“The Committee decided as follows: retain the Monetary Policy Rate at 26.5 per cent,” Cardoso announced.
The MPC also retained the Standing Facilities Corridor around the MPR at +50/-450 basis points, while maintaining the Cash Reserve Ratio (CRR) for Deposit Money Banks at 45 per cent, 16 per cent for merchant banks and 75 per cent for non-TSA public sector deposits.
According to the CBN governor, although Nigeria’s headline inflation moderated marginally in June, heightened geopolitical uncertainties continue to pose risks to price stability.
“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 due mainly to the renewed hostilities in the Middle East,” he said.
Cardoso, however, noted that Nigeria’s economy has remained largely resilient to external shocks, reflecting the impact of recent structural reforms.
The decision marks the second time this year that the MPC has left the benchmark interest rate unchanged.
The move comes days after the National Bureau of Statistics reported that Nigeria’s headline inflation rate eased to 15.91 per cent in June 2026, down slightly from 15.93 per cent recorded in May. The 0.02 percentage point decline represents the first drop in inflation in three months.
The MPC’s latest decision underscores the apex bank’s cautious approach to balancing inflation control with economic stability amid an increasingly uncertain global environment.