CBN retains interest rate at 26.5% as MPC cites global risks
The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR), the country’s benchmark interest rate, at 26.5 per cent, citing persistent global uncertainties despite signs of improving domestic economic conditions.
The decision was announced on Tuesday by the CBN Governor, Olayemi Cardoso, at the end of the 306th meeting of the Monetary Policy Committee (MPC), held in Abuja from July 20 to 21, 2026.
Cardoso said the committee unanimously agreed to leave the policy rate unchanged after assessing both domestic and global economic developments.
“The Committee decided as follows: retain the Monetary Policy Rate at 26.5 per cent,” he said.
The MPC also retained the Standing Facilities Corridor at +50/-450 basis points around the MPR. It left the Cash Reserve Ratio (CRR) unchanged at 45 per cent for Deposit Money Banks, 16 per cent for merchant banks, and 75 per cent for non-TSA public sector deposits.
Explaining the decision, Cardoso said the committee considered the balance of risks facing the economy, noting that although inflation eased slightly in June, renewed geopolitical tensions, particularly in the Middle East, continue to threaten global energy prices and domestic inflation.
“The committee’s decision to maintain the current policy stance follows a thorough assessment of the balance of risk. Although headline inflation moderated marginally in June 2026, global uncertainties have heightened due mainly to the renewed hostilities in the Middle East,” he said.
He added that Nigeria’s economy has remained resilient despite external shocks, reflecting the impact of ongoing structural reforms and prudent monetary policy.
The decision marks the second time this year that the MPC has maintained the benchmark interest rate.
The latest policy decision follows the release of the National Bureau of Statistics’ Consumer Price Index report, which showed that Nigeria’s headline inflation rate declined marginally to 15.91 per cent in June 2026, from 15.93 per cent in May.
According to the NBS, the 0.02 percentage-point decline represents the first drop in headline inflation in three months, signalling a modest easing in price pressures even as the CBN remains cautious about external risks to the economy.