CBN Keeps Benchmark Interest Rate at 26.50%
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) kept the benchmark interest rate unchanged at 26.50% following the completion of a 2-day meeting on Tuesday.
The committee’s decision is in line with market consensus that the monetary authority will prioritise macroeconomic stability over making any adjustment to key rates.
The CBN retained the asymmetric corridor around the MPR at +50bps/-450bps and kept the cash reserve ratio (CRR) for commercial banks at 45.00%. The meeting also retained the CRR of merchant banks at 16.00% and maintained 75.00% CRR on Non-TSA public sector deposits.
The policy decision was made despite headline inflation decreasing to 15.91% in June 2026. The Committee is focused on consolidating disinflation gains while addressing ongoing domestic inflationary pressures and global uncertainties.
The MPC noted improvements in exchange rate stability, stronger external reserves, and sustained foreign portfolio inflows but chose to maintain the current policy to better anchor inflation expectations.
This decision indicates the CBN’s preference to evaluate the sustainability of recent macroeconomic improvements while carefully monitoring global geopolitical tensions, commodity price changes, exchange rate trends, and domestic inflation before considering any policy changes.
MPC: Firms Predict Interest Rate Hold as Macro Stability Takes Priority
