The Central Bank of Nigeria (CBN) has left its benchmark Monetary Policy Rate (MPR) unchanged at 26.5 per cent for a second straight meeting, citing heightened geopolitical tensions in the Middle East and lingering inflation concerns despite a slight slowdown in price growth.
CBN Governor Olayemi Cardoso announced the decision on Tuesday after the Monetary Policy Committee’s 306th meeting in Abuja, attended by all 11 members.
Cardoso said the committee agreed to retain the MPR at 26.5 per cent while also leaving the standing facilities corridor unchanged. The Cash Reserve Ratio remains at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account public sector deposits.
The latest decision comes after the MPC held rates at its previous meeting following a 50-basis-point reduction in February 2026.
Although Nigeria’s headline inflation eased slightly to 15.91 per cent in June from 15.93 per cent in May, Cardoso said the committee opted to remain cautious because of growing global uncertainties.
“The committee’s decision to maintain the current policy stance followed a thorough assessment of the balance of risks. Although 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,” he said.
He noted that members carefully evaluated the renewed conflict in the Middle East, particularly its potential impact on global energy prices and the risk of increasing domestic inflation.
“In arriving at its decision, the committee noted the recent resurgence of hostilities in the Middle East, with particular attention to its spillover effects on global energy prices and the potential pass-through to domestic inflation,” Cardoso added.
Despite the external challenges, the CBN governor said Nigeria’s economy has continued to show resilience, attributing the performance to reforms introduced 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,” he said.
Cardoso explained that keeping interest rates unchanged would give the MPC more time to monitor economic indicators and inflation trends before making further policy adjustments.
He also commended the Federal Government’s renewed commitment to coordinating fiscal and monetary policies, saying the closer collaboration has helped reduce the domestic effects of the Middle East crisis and would further strengthen macroeconomic stability.
