The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Tuesday retained the Monetary Policy Rate (MPR), at 26.5 per cent, as it assessed easing inflation, exchange rate stability and other developments in the economy.
The CBN Governor, Olayemi Cardoso, announced the decision while briefing journalists at the end of the committee’s two-day meeting in Abuja.
The decision followed the 306th MPC meeting held on 20 and 21 July.
The committee also retained the asymmetric corridor around the MPR at [+50/-450] basis points, the Cash Reserve Ratio (CRR) at 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks.
It also retained the liquidity ratio at 30 per cent.
The latest decision to maintain the current policy stance followed a thorough assessment of the balance of risks.
The committee, in its last meeting in May, retained the benchmark interest rate at 26.5 per cent, citing renewed inflationary pressures linked to global energy market disruptions and domestic price concerns.
Since then, inflation has continued to ease. According to the National Bureau of Statistics (NBS), headline inflation eased slightly to 15.91 per cent in June from 15.93 per cent in May, ending three consecutive months of increases from the 15.06 per cent recorded in January.
Though the headline inflation moderated marginally in June 2026, global uncertainties heightened due mainly to the hostilities in the Middle East.
In view of the developments, Mr Cardoso said maintaining a cautious monetary policy stance remains appropriate.
According to him, 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.
“However, maintaining the current monetary policy stance will provide an opportunity to closely monitor incoming data and assess the trajectory of inflation to guide future policy decisions.
“The MPC acknowledged the federal government’s renewed commitment to strengthening policy coordination, with particular emphasis on the ongoing collaboration with the monetary authority, which has helped to moderate the impact of the Middle East crisis on. on the domestic economy,” he said
Mr Cardoso said members of the committee noted that closer coordination between fiscal and monetary policies would improve the effectiveness of policy measures and support overall macroeconomic stability.
The committee also reviewed the latest inflation figures, noting that the decline in headline inflation was driven largely by lower food inflation.
However, non-food inflation rose to 17.52 per cent in June 2026 from 16.96 per cent in May, reflecting supply constraints in major food-producing areas and elevated transportation costs.
According to him, inflation is projected to moderate further in the medium term on the back of continued stability in the foreign exchange market, large effect of previous monetary policy tightening and improved food supply conditions as the harvest season approaches.
He said the key risk to the outlook, however, remains the severe and prolonged escalation of the Middle East conflict.
He stated, “In the light of these considerations, the committee reaffirmed its commitment to preserve price and financial system stability, and remains prepared to take appropriate policy measures, guided by involving macroeconomic conditions.”
