The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 26.5 per cent following its 306th meeting in Abuja.
CBN Governor Olayemi Cardoso announced the decision on Tuesday, saying the committee opted to keep key monetary parameters unchanged while it monitors developments in the domestic and global economy.
It is the second time in 2026 that the MPC has left the benchmark interest rate unchanged.
The committee also retained the asymmetric corridor around the MPR at +500/-100 basis points, kept the Cash Reserve Ratio (CRR) at 40.5 per cent for deposit money banks and 16 per cent for merchant banks, while maintaining the liquidity ratio at 30 per cent.
Cardoso said the decision followed a careful evaluation of prevailing economic conditions and potential risks.
“The committee’s decision to maintain the current policy stance followed a thorough assessment of the balance of risks,” he 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.”
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The CBN governor noted that despite geopolitical tensions and external pressures, Nigeria’s economy has continued to show resilience, which he attributed to reforms introduced by both the 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,” Cardoso said.
He also praised the growing collaboration between the Federal Government and the apex bank, stressing that stronger coordination would improve economic outcomes.
“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 expressed optimism that inflation would continue on a downward path but warned that an escalation of the conflict in the Middle East could reverse the gains.
He added that the committee advised the CBN to maintain close oversight of financial institutions “to preserve financial sector soundness and mitigate potential risks to financial stability.”
The MPC chairman reiterated the committee’s commitment to maintaining price stability and safeguarding the financial system, noting that it would adjust monetary policy if economic conditions require it.
The latest decision comes after Nigeria’s inflation rate declined to 15.91 per cent in June 2026, marking its first drop in three months.
Ahead of the meeting, several economists had urged the CBN to leave the benchmark rate unchanged, citing renewed increases in food prices despite easing headline inflation.