CBN holds Interest Rate at 26.5% amid global economic uncertainty

The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR), the country’s benchmark interest rate, at 26.5 per cent, maintaining a cautious monetary policy stance as it weighs easing domestic inflation against mounting global economic risks.

The decision was announced on Tuesday by CBN Governor Olayemi Cardoso at the end of the 306th Monetary Policy Committee (MPC) meeting held in Abuja from July 20 to 21.

Cardoso said the committee unanimously agreed to leave the benchmark rate unchanged after assessing domestic and international economic conditions.

According to him, although Nigeria’s headline inflation eased slightly in June 2026, renewed hostilities in the Middle East have heightened global uncertainty, posing risks to energy prices and domestic inflation.

“The committee’s decision to maintain the current policy stance follows a thorough assessment of the balance of risks,” Cardoso said, adding that recent structural reforms have strengthened the resilience of the domestic economy despite persistent external shocks.

The decision marks the second consecutive MPC meeting at which the apex bank has kept the MPR at 26.5 per cent, following a 50-basis-point reduction from 27 per cent in February.

In addition to retaining the benchmark interest rate, the MPC maintained the Standing Facilities Corridor at +50/-450 basis points around the MPR.

The committee also left the Cash Reserve Ratio (CRR) unchanged at 45 per cent for Deposit Money Banks and 16 per cent for merchant banks, while retaining the 75 per cent CRR on non-Treasury Single Account (non-TSA) public sector deposits.

The CBN said the policy measures are intended to sustain price stability, strengthen liquidity management and encourage banks to channel more credit to the productive sectors of the economy rather than holding excess funds with the apex bank.

The committee noted that it would continue to monitor developments in both the domestic and global economies and take appropriate measures to safeguard macroeconomic stability.