The Monetary Policy Committee of the Central Bank of Nigeria has again retained the Monetary Policy Rate, the country’s benchmark interest rate, at 26.5 per cent, maintaining its cautious approach to monetary policy amid improving but still fragile inflation trends.
The Punch reported that the CBN Governor Olayemi Cardoso announced the decision on Tuesday while briefing journalists at the end of the committee’s 306th MPC meeting held in Abuja.
Cardoso said, “The Committee decided as follows: retain the monetary policy rate at 26.5 per cent.”
The decision marks the second consecutive meeting at which the MPC has left the benchmark lending rate unchanged, following its previous decision to hold rates after implementing a 50-basis-point reduction in February 2026.
The committee’s latest stance signals its preference to sustain current monetary conditions while closely monitoring inflation, exchange rate stability and broader macroeconomic developments.
The Monetary Policy Rate serves as the benchmark interest rate that influences lending costs across the banking sector. Any adjustment to the rate typically affects borrowing costs for businesses and households, savings returns and overall economic activity.
The MPC’s decision comes despite a slight moderation in Nigeria’s inflation rate.
According to the latest Consumer Price Index report released by the National Bureau of Statistics, the country’s headline inflation rate declined marginally to 15.91 per cent in June 2026, compared with 15.93 per cent recorded in May.
The latest figure represents the first monthly decline after three consecutive increases. 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, before easing slightly in June.
Although the slowdown is modest, it suggests that inflationary pressures may be beginning to stabilise.
However, the MPC appears to have opted for policy continuity as it assesses whether the improvement can be sustained before considering any further adjustments to interest rates.
Financial analysts had expected the committee to either maintain the current rate or implement another modest cut, given the easing inflation trend. However, the MPC’s decision indicates a continued focus on consolidating price stability while safeguarding the gains already recorded in the economy.
