CBN retains interest rate at 26.5%

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 inflationary pressures and growing global economic uncertainties.

CBN Governor Olayemi Cardoso announced the decision on Tuesday after the conclusion of the bank’s 306th Monetary Policy Committee (MPC) meeting held in Abuja.

The decision marks the second consecutive time the committee has retained the benchmark rate at 26.5 per cent, following a 50-basis-point reduction from 27 per cent in February.

Explaining the decision, Cardoso said the committee carefully assessed domestic and global economic conditions before opting to maintain the current monetary policy stance.

“The MPC decision followed a thorough assessment of the balance; although headline inflation moderated marginally in June 2026, it has heightened due to renewed hostilities in the Middle East,” he said.

The committee also adjusted the asymmetric corridor around the MPR to +50/-450 basis points to encourage banks to increase lending to the real sector instead of holding excess funds with the apex bank.

In addition, the MPC retained the Cash Reserve Ratio (CRR) for commercial banks at 45 per cent, maintained the CRR for merchant banks at 16 per cent, and kept the CRR on non-Treasury Single Account (TSA) public-sector deposits at 75 per cent.

The decision comes after Nigeria’s headline inflation eased slightly to 15.91 per cent in June, from 15.93 per cent in May, according to the National Bureau of Statistics (NBS).

Despite the marginal decline, inflation has remained elevated in recent months, driven largely by rising global oil prices following renewed geopolitical tensions in the Middle East.

The CBN said it would continue to monitor inflationary developments and take appropriate measures to safeguard price stability and support sustainable economic growth.