The Central Bank of Nigeria (CBN) has once again chosen stability over a rate cut, leaving the country’s benchmark interest rate unchanged at 26.5 per cent.
The decision was announced on Tuesday after the Monetary Policy Committee (MPC) concluded its 306th meeting in Abuja, with renewed tensions in the Middle East and wider global uncertainties emerging as major concerns.
CBN Governor, Olayemi Cardoso, said the Committee had carefully reviewed recent economic developments both within Nigeria and globally before deciding to retain the Monetary Policy Rate (MPR).
“The Committee decided as follows: retain the monetary policy rate at 26.5 per cent,” Cardoso said at the end of the MPC meeting held from July 20 to 21, 2026.
The Committee also retained the Standing Facilities Corridor around the MPR at +50/-450 basis points.
Similarly, the Cash Reserve Ratio (CRR) was maintained at 45 per cent for Deposit Money Banks and 16 per cent for merchant banks, while the CRR for non-TSA public sector deposits remained at 75 per cent.
According to Cardoso, the decision reflected the Committee’s assessment of the balance of risks facing the economy.
“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,” he said.
The CBN Governor, however, said the Nigerian economy had continued to show resilience despite the external pressures.
Cardoso noted that domestic economic indicators remained encouraging following previous structural reforms, while the economy had remained “largely resilient to the external shocks”.
The latest decision marks the second time this year that the CBN’s MPC has kept the interest rate unchanged.
It comes days after the National Bureau of Statistics (NBS) reported a marginal decline in Nigeria’s headline inflation, which fell from 15.93 per cent in May 2026 to 15.91 per cent in June.
The June figure represents the first decline in the country’s headline inflation rate in three months.
According to the NBS Consumer Price Index (CPI) report, the June 2026 inflation rate dropped by 0.02 percentage points compared with the figure recorded in May.
