The Central Bank of Nigeria (CBN) has decided to retain the Monetary Policy Rate (MPR) at 26.5 per cent, as announced by CBN Governor Olayemi Cardoso on Tuesday following the 306th Monetary Policy Committee (MPC) meeting held in Abuja from July 20 to July 21.
MPC Decision Details
"The committee decided as follows: retain the monetary policy rate at 26.5 per cent," Mr Cardoso stated at the MPC briefing. This marks the second consecutive retention of the MPR at 26.5 per cent, after a 50-basis-point reduction in February from 27 per cent.
Cardoso explained that the committee’s decision was based on a thorough assessment of risk balances. Although headline inflation moderated marginally in June 2026, global uncertainties have heightened due to renewed hostilities in the Middle East.
Adjustments to Asymmetric Corridor and CRR
The MPC also adjusted the asymmetric facilities corridor around the MPR to +50/-450 basis points. This move aims to discourage banks from holding idle funds with the CBN and to encourage increased lending into the economy. Additionally, 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.
Economic Resilience and Inflation Trends
Cardoso noted that despite global uncertainties, the Nigerian economy has "remained largely resilient to the external shocks." The decision came days after the National Bureau of Statistics (NBS) announced that the country’s headline inflation dropped to 15.91 per cent in June 2026, a slight adjustment from 15.93 per cent recorded in the previous month.
