CBN Maintains 26.5% Interest Rate Amid Inflation Risks

On Tuesday, the Monetary Policy Committee of the Central Bank of Nigeria, led by Governor Olayemi Cardoso, decided to maintain the Monetary Policy Rate at 26.5% for the second consecutive meeting. This decision was made during the MPC's 306th meeting in Abuja, attended by all 11 members.

Cardoso cited renewed geopolitical tensions in the Middle East and ongoing inflationary risks as key factors influencing the decision, despite a slight moderation in Nigeria's headline inflation rate, which eased to 15.91% in June 2026 from 15.93% in May. The committee also retained the standing facilities corridor around the MPR and the Cash Reserve Ratio at 45% for Deposit Money Banks.

Members of the organized private sector and economists expressed support for the MPC's decision, describing it as sensible amid global uncertainties, while advocating for rate easing when inflation and external risks stabilize. Cardoso noted the importance of assessing global energy prices and their potential impact on domestic inflation.