CBN Governor, Olayemi Cardoso
The Monetary Policy Committee of the Central Bank of Nigeria yesterday, retained the Monetary Policy Rate (MPR), the benchmark interest rate, at 26.5 per cent for the second consecutive meeting, citing renewed geopolitical tensions in the Middle East and persistent inflationary risks despite a slight moderation in domestic inflation.
The decision was announced by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, at the end of the MPC’s 306th meeting in Abuja, which was attended by all 11 members.
Cardoso said the committee resolved to “retain the monetary policy rate at 26.5 per cent.”
The MPC also retained the standing facilities corridor around the MPR, the Cash Reserve Ratio 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 decision follows the committee’s previous decision to hold rates after implementing a 50-basis-point cut in February 2026.
Before now, the National Bureau of Statistics, headline inflation had eased to 15.91 per cent in June 2026 from 15.93 per cent in May, marking its first decline after three consecutive monthly increases.
Otherwise, Inflation had risen from 15.06 per cent in February to 15.38 per cent in March, 15.69 per cent in April and 15.93 per cent in May.
Explaining the committee’s decision, Cardoso said members considered the balance of risks and concluded that maintaining the current policy stance remained the most appropriate option.
“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 added that the committee carefully assessed the renewed conflict in the Middle East because of its implications for global energy prices and the possible transmission to domestic inflation.
The CBN governor said, “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, however, said the Nigerian economy had remained resilient to external shocks, reflecting the impact of reforms implemented by both the fiscal and monetary authorities.
The committee also commended the implementation of Executive Order 9, describing it as capable of strengthening Nigeria’s macroeconomic fundamentals, while urging the government to sustain efforts to increase crude oil production and accelerate reforms in the solid minerals sector to diversify public revenue.
It further welcomed the outcome of the banking sector recapitalisation exercise, saying it had improved the resilience of the financial system as reflected in key prudential and financial soundness indicators, while urging the CBN to sustain effective supervision to preserve financial stability.
On inflation, Cardoso said the moderation in headline inflation was driven by lower core inflation, although food prices continued to rise.
