The CBN retains MPR at 26.5 per cent, maintaining Nigeria’s benchmark interest rate following the conclusion of the 306th Monetary Policy Committee (MPC) meeting held in Abuja between July 20 and July 21. Central Bank of Nigeria (CBN) Governor Olayemi Cardoso announced the decision during the committee’s post-meeting briefing on Tuesday, stating that members unanimously agreed to leave the Monetary Policy Rate unchanged.
According to Cardoso, the decision reflects the committee’s assessment of prevailing domestic and international economic conditions. This marks the second consecutive MPC meeting in which the benchmark rate has been maintained at 26.5 per cent, following the 50-basis-point reduction implemented in February when the rate was lowered from 27 per cent.
Explaining the decision, Cardoso said the committee carefully evaluated the balance of economic risks before deciding to maintain the current monetary policy stance. He noted that while Nigeria’s headline inflation recorded a slight moderation in June 2026, global economic uncertainties have intensified, largely due to renewed tensions in the Middle East.
Beyond the benchmark rate, the MPC also approved adjustments to other monetary policy instruments. The committee revised the asymmetric corridor around the Monetary Policy Rate to +50/-450 basis points, a move designed to discourage commercial banks from holding excess liquidity with the apex bank while encouraging increased lending to businesses and productive sectors of the economy.
The committee also retained the Cash Reserve Ratio (CRR) for commercial banks at 45 per cent, while leaving the CRR for merchant banks unchanged at 16 per cent. Similarly, the CRR on non-Treasury Single Account (non-TSA) public sector deposits was maintained at 75 per cent as part of ongoing liquidity management measures.
Cardoso stated that despite growing global uncertainties, Nigeria’s economy has continued to demonstrate resilience against external shocks. The latest monetary policy decision comes shortly after the National Bureau of Statistics (NBS) reported that the country’s headline inflation rate eased marginally to 15.91 per cent in June 2026, down from 15.93 per cent recorded in May.
The slight decline in inflation, alongside the MPC’s decision to hold key policy rates steady, reflects the CBN’s cautious approach as it seeks to balance inflation control with broader economic stability amid evolving global conditions. With the CBN retains MPR at 26.5 per cent, attention will now shift to how commercial banks respond to the revised policy corridor and whether the measures succeed in stimulating greater private sector lending while maintaining macroeconomic stability.
