The Central Bank of Nigeria (CBN) has retained its benchmark Monetary Policy Rate (MPR) at 26.5%, maintaining its current monetary policy stance following the conclusion of the Monetary Policy Committee’s (MPC) 306th meeting in Abuja.
CBN Governor Olayemi Cardoso, who also chairs the MPC, announced the decision during a media briefing on Tuesday, saying the committee unanimously agreed to keep the benchmark rate unchanged while closely monitoring economic developments before considering any policy adjustments.
The decision marks the second consecutive MPC meeting in 2026 at which the benchmark interest rate has been left unchanged.
In addition to retaining the MPR, the committee left the asymmetric corridor at +500/-100 basis points, maintained the Cash Reserve Ratio (CRR) at 40.5% for deposit money banks and 16% for merchant banks, while keeping the liquidity ratio unchanged at 30%.
Cardoso said the committee reached its decision after assessing both domestic and global economic conditions, noting that although inflation moderated slightly in June, renewed geopolitical tensions, particularly in the Middle East, continue to pose risks to price stability.
He explained that maintaining the current monetary policy stance would allow policymakers to evaluate incoming economic data before deciding whether further policy adjustments are necessary.
The CBN governor said Nigeria’s economy has remained resilient despite external headwinds, attributing the performance to reforms implemented by both fiscal and monetary authorities.
He also highlighted improved coordination between the federal government and the apex bank, saying stronger policy alignment would enhance macroeconomic stability and improve the effectiveness of economic policies.
The MPC welcomed the positive outcome of the banking sector recapitalisation exercise, noting that key prudential and financial soundness indicators reflect a stronger and more resilient banking system.
While expressing confidence that inflationary pressures could continue to ease, Cardoso cautioned that a prolonged escalation of the Middle East conflict remains the biggest risk to Nigeria’s inflation outlook.
He added that the committee urged the CBN to sustain close supervision of financial institutions to preserve banking sector stability and mitigate potential risks to the financial system.
Cardoso reaffirmed the MPC’s commitment to maintaining price and financial system stability, stressing that the committee remains prepared to adjust monetary policy if macroeconomic conditions warrant.
The latest policy decision follows Nigeria’s inflation rate easing to 15.91% in June 2026, its first decline in three months, while several economists had advised the CBN to retain the current interest rate amid rising food prices.
Goodness Anunobi
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