CBN Holds Interest Rate Steady at 26.5% Amid Risks

During the 306th Monetary Policy Committee (MPC) meeting held in Abuja, the Central Bank of Nigeria (CBN), under the leadership of Governor Olayemi Cardoso, announced that it would maintain the policy interest rate at 26.5%. The decision was unanimous among committee members and was influenced by global economic uncertainties, particularly regarding the United States and ongoing conflicts in the Middle East.

The MPC's cautious approach aims to balance the fight against inflation with the necessity of sustaining economic recovery while managing market expectations. Despite a slight decline in Nigeria's headline inflation rate to 15.91% in June 2026 from 15.93% in May, the committee emphasized the importance of maintaining monetary discipline until there is clear evidence of sustained inflation reduction.

Cardoso noted that the committee's decision reflects a thorough assessment of risks, including the potential impact of Middle Eastern conflicts on global energy prices and domestic inflation. The CBN remains focused on price stability and preserving gains in the foreign exchange market.