The Monetary Policy Committee of the Central Bank of Nigeria has retained the benchmark interest rate, also known as the Monetary Policy Rate, at 26.5 percent. The decision was announced on Tuesday by CBN Governor, Mr. Olayemi Cardoso, at the end of the committee’s 306th meeting in Abuja.

 This marks the second consecutive time the MPC is holding rates at 26.5 percent. The rate was previously cut by 50 basis points in February 2026 from 27 percent. Governor Cardoso said the decision followed a thorough assessment of current economic conditions.

The rate retention comes despite a marginal drop in Nigeria’s headline inflation. According to the National Bureau of Statistics, inflation eased slightly to 15.91 percent in June 2026, from 15.93 percent in May. It is the first decline after three straight monthly increases from February to May.

The CBN Governor noted that although inflation moderated marginally, pressures remain elevated due to renewed hostilities in the Middle East. He said global oil price increases linked to the conflict, which started in February, have continued to impact the economy.

The MPC also adjusted the asymmetric corridor around the MPR to plus 50, minus 450 basis points. The move is aimed at discouraging banks from keeping idle funds with the CBN and encouraging more lending into the economy.

The committee retained the Cash Reserve Ratio for commercial banks at 45 percent, and for merchant banks at 16 percent. The CRR on non-TSA public sector deposits was also kept at 75 percent as part of measures for liquidity management.

With inflation still high despite the slight drop, the CBN says it is maintaining a cautious stance to stabilize prices and support growth. The bank added that it will continue to monitor global and domestic developments to guide future monetary policy decisions.