The Central Bank of Nigeria (CBN) has retained the benchmark interest rate at 26.5 per cent, maintaining a cautious stance amidst inflationary pressures.
CBN Governor Olayemi Cardoso disclosed the committee’s decision at the conclusion of the bank’s two-day, 306th Monetary Policy Committee (MPC) meeting held in Abuja.
This decision marks the second consecutive retention of the Monetary Policy Rate (MPR).
In February, the CBN reduced the benchmark interest rate to 26.5 per cent. The CBN cut its lending rate by 50 basis points from the 27 per cent it maintained in November 2025.
In May the apex bank kept its key interest rate unchanged at 26.5 per cent.
The benchmark interest rate, formally known as the MPR, is a key tool used by central banks to influence borrowing costs, inflation, and overall economic activity.
Speaking after the meeting on Tuesday, the CBN Governor stated that the committee’s decision was based on a thorough assessment of the economy.
“The MPC decision followed a thorough assessment of the balance; although headline inflation moderated marginally in June 2026, it has heightened due to renewed hostilities in the Middle East,” Mr Cardoso said.
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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.
Furthermore, the committee maintained the Cash Reserve Ratio (CRR) for commercial banks at 45 per cent, retained the rate for merchant banks at 16 per cent, and kept the CRR on non-TSA public-sector deposits at 75 per cent for liquidity management considerations.
The interest rate was held after Nigeria’s headline inflation rate eased slightly to 15.91 per cent in June, down from 15.93 per cent recorded in May, according to the National Bureau of Statistics (NBS).
The statistics office said the June 2026 headline inflation rate showed a decrease of 0.02 per cent compared to the May 2026 headline inflation rate.
On a month-on-month basis, the bureau said the headline inflation rate in June 2026 was 1.66 per cent, which was 0.09 per cent lower than the rate recorded in May 2026 (1.75 per cent).
