CBN Holds Interest Rate at 26.5 Per Cent

The Central Bank of Nigeria (CBN) has decided to keep the Monetary Policy Rate (MPR) at 26.5 per cent after the 306th Monetary Policy Committee (MPC) meeting held in Abuja between 20 and 21 July. The announcement was made on Tuesday by CBN Governor Olayemi Cardoso, who said the committee agreed to maintain the current benchmark interest rate after reviewing the latest economic conditions.

This is the second straight meeting where the Monetary Policy Rate has remained at 26.5 per cent, following a 50-basis-point cut from 27 per cent in February. Explaining the decision, Cardoso said, “The committee decided as follows: retain the monetary policy rate at 26.5 per cent.”

He added that the committee carefully weighed the risks before reaching its decision. “The committee’s decision to maintain the current policy stand 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,” Cardoso said.

Alongside the decision on the Monetary Policy Rate, the MPC adjusted the asymmetric corridor around the MPR to +50/-450 basis points. The change aims to discourage banks from leaving excess funds with the CBN and encourage more lending across the economy. The committee also retained the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks, 16 per cent for merchant banks, and 75 per cent for non-TSA public-sector deposits.

Cardoso noted that despite growing global uncertainty, the Nigerian economy has “remained largely resilient to the external shocks”. The decision follows the National Bureau of Statistics (NBS) report showing headline inflation eased slightly to 15.91 per cent in June 2026 from 15.93 per cent in May.

Do you think keeping the Monetary Policy Rate unchanged will help strengthen Nigeria’s economic recovery?