The Central Bank of Nigeria (CBN) has retained the country’s benchmark Monetary Policy Rate (MPR) at 26.5 per cent, citing growing global uncertainties despite signs of improving economic conditions at home.
The decision was announced on Tuesday by CBN Governor Olayemi Cardoso after the 306th Monetary Policy Committee (MPC) meeting, which was held in Abuja from July 20 to 21, 2026.
According to Cardoso, members of the committee agreed to maintain the current interest rate after reviewing both domestic and global economic developments, particularly the renewed geopolitical tensions in the Middle East.
“The Committee decided to retain the Monetary Policy Rate at 26.5 per cent,” Cardoso announced.
He explained that although Nigeria’s economy has continued to show resilience following recent economic reforms, rising global uncertainties could increase pressure on energy prices and inflation.
“Although headline inflation moderated marginally in June 2026, global uncertainties have heightened due mainly to the renewed hostilities in the Middle East,” he said.
The committee also retained other key monetary policy parameters, including:
- Standing Facilities Corridor: +50 / -450 basis points around the MPR
- Cash Reserve Ratio (CRR): 45% for Deposit Money Banks
- CRR for Merchant Banks: 16%
- CRR for Non-TSA Public Sector Deposits: 75%
Cardoso noted that despite global economic challenges, Nigeria has remained largely resilient to external shocks, adding that the committee considered the current monetary policy stance appropriate.
The decision marks the second time this year that the MPC has left the benchmark interest rate unchanged.
The announcement comes just days after the National Bureau of Statistics (NBS) reported that Nigeria’s headline inflation rate dropped slightly to 15.91% in June 2026, from 15.93% recorded in May.
According to the NBS, the decline of 0.02 percentage points represents the first drop in Nigeria’s inflation rate in three months, offering a modest sign of easing price pressures.
The CBN says it will continue to monitor both domestic and global economic developments before making future policy decisions.
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