The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) has again retained the monetary policy rate (MPR) at 26.5 percent.
Olayemi Cardoso, CBN’s governor, announced the committee’s decision at a press conference on Tuesday after the panel’s 306th meeting in Abuja.
This is the second time the CBN committee has left the interest rate unchanged in 2026.
The MPC also retained the asymmetric corridor around the MPR at +500/-100 basis points, the cash reserve ratio (CRR) at 40.5 percent for deposit money banks and 16 percent for merchant banks, while leaving the liquidity ratio unchanged at 30 percent.
Explaining the decision, Cardoso said maintaining the current policy stance would enable it to assess incoming economic data before making further adjustments.
“The committee’s decision to maintain the current policy stance followed a thorough assessment of the balance of risks,” the CBN governor said.
“Although the 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.”
Cardoso, also the MPC chairman, said while geopolitical tensions continue to pose upside risks to inflation, Nigeria’s economy has remained resilient due to reforms implemented by both fiscal and monetary authorities.
“Available evidence suggests that the Nigerian economy has remained largely resilient to the external shocks, reflecting the gains from prior reforms implemented by the fiscal and monetary authorities,” the governor said.
He said the committee also acknowledged improved coordination between the federal government and the CBN, saying stronger policy alignment would enhance macroeconomic stability.
“Members thus noted that greater alignment between fiscal and monetary policies would enhance policy effectiveness and support the achievement of overall macroeconomic objectives,” he said.
“The MPC welcomed the positive outcome of the banking sector recapitalisation exercise, noted improvement in the resilience of the banking system, as reflected in key prudential and financial soundness indicators.”
Cardoso said the committee projected that inflation would continue to moderate but warned that a prolonged escalation of the Middle East conflict remains the biggest threat to the outlook.
According to the economist, the MPC urged the apex bank to sustain close supervision of lenders “to preserve financial sector soundness and mitigate potential risks to financial stability”.
He also reaffirmed the panel’s commitment to price and financial system stability, adding that the MPC remains prepared to adjust policy if macroeconomic conditions warrant.
The latest monetary policy position comes after the country’s inflation rate dropped, for the first time in three months, to 15.91 percent in June 2026.
Economists had advised the CBN to maintain the current interest rate due to surging food prices.
Muda Yusuf, chief executive officer (CEO) of the CPPE, said while headline inflation has broadly stabilised and core inflation continues to moderate, food prices have resumed an upward trajectory.
