CBN Holds Interest Rate at 26.5% as MPC Cites Global Uncertainties

The Central Bank of Nigeria (CBN) has kept the country's benchmark interest rate, the Monetary Policy Rate (MPR), unchanged at 26.5 per cent following the outcome of the 306th meeting of its Monetary Policy Committee (MPC).

Announcing the committee's decision in Abuja on Tuesday, CBN Governor Olayemi Cardoso said members agreed to maintain the current monetary policy stance after assessing recent domestic economic developments and global financial conditions.

Cardoso noted that while Nigeria's economy has continued to show resilience following recent structural reforms, persistent geopolitical tensions, particularly in the Middle East, remain a significant risk to global energy prices and domestic inflation.

"The Committee decided as follows: retain the Monetary Policy Rate at 26.5 per cent," he said while presenting the communique from the two-day meeting, which was held from July 20 to 21, 2026.

The committee unanimously agreed to leave the benchmark lending rate unchanged after reviewing key macroeconomic indicators and weighing the outlook for both the domestic and global economies.

Beyond the MPR, the MPC also resolved to retain the Standing Facilities Corridor at +50/-450 basis points around the policy rate.

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

The decision underscores the CBN's cautious approach to monetary policy as it balances the need to contain inflation with efforts to