The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 26.5 percent.
The decision was announced on Tuesday by the CBN Governor, Olayemi Cardoso, at the end of the 305th Monetary Policy Committee (MPC) meeting in Abuja.
Naija News reports that the CBN retained the benchmark interest rate at 26.5 per cent for the second time.
“The Committee decided as follows: retain the monetary policy rate at 26.5 percent,” Cardoso said.
In addition to retaining the MPR, the MPC left all other key monetary parameters unchanged. It retained the asymmetric corridor around the MPR at +500/-100 basis points, maintained the Cash Reserve Ratio (CRR) for Deposit Money Banks at 45 per cent, Merchant Banks at 16 per cent, and kept the liquidity ratio at 30 per cent.
Cardoso said the committee’s decision followed a careful assessment of domestic economic conditions and emerging global risks, particularly the resurgence of hostilities in the Middle East and their implications for global commodity prices.
According to him, although Nigeria’s headline inflation dropped marginally in June, the evolving geopolitical developments warranted a cautious monetary policy stance.
“The committee’s decision to maintain the current policy stance followed a thorough assessment of the balance of risks. Although headline inflation moderated marginally in June 2026, global uncertainties have heightened due mainly to the renewed hostilities in the Middle East.
“In view of the evolving developments, maintaining a cautious monetary policy stance remains appropriate,” he said.
The committee observed that the renewed conflict in the Middle East could increase global energy prices and trigger imported inflation through higher fuel and transportation costs.
Despite these concerns, the MPC expressed confidence that the Nigerian economy had remained resilient to external shocks due to the fiscal and monetary reforms implemented by the government and the apex bank.
Cardoso explained that retaining the current policy stance would enable the committee to monitor incoming economic data before making further policy adjustments.
The MPC also commended the federal government for strengthening coordination between fiscal and monetary authorities, noting that such collaboration had helped moderate the domestic impact of global economic shocks.
