The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR), which is the benchmark interest rate at 26. 5 per cent.
The Governor of the CBN, Olayemi Cardoso, announced after the 306th Monetary Policy Committee (MPC) meeting in Abuja from July 20 to July 21 that the committee decided to retain the monetary policy rate at 26.5 per cent.
Briefing journalists and other stakeholders after the meeting, Mr. Cardoso explained that the decision marks the second consecutive retention of the MPR at 26.5 per cent, following a 50-basis-point reduction in February from 27 per cent.
“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,” Cardoso said.
The MPC also adjusted the asymmetric facilities corridor around the MPR to +50/-450 basis points, a move aimed at discouraging banks from keeping idle funds with the CBN and encouraging increased lending into the economy.
According to Cardoso, the committee resolved to maintain the Cash Reserve Ratio (CRR) for commercial banks at 45 per cent, retain the rate for merchant banks at 16 per cent and keep the CRR on non-TSA public-sector deposits at 75 per cent for liquidity management considerations.
He stated that despite the global uncertainties, the Nigerian economy has “remained largely resilient to the external shocks”.
The resolution of the MPC is coming some days after Nigeria’s National Bureau of Statistics (NBS) announced that the country’s headline inflation dropped to 15.91 per cent in June 2026, a slight adjustment from 15.93 per cent recorded in May.
GIK/APA