Nigeria central bank keeps benchmark rate at 26.5%

The Central Bank of Nigeria has held its benchmark interest rate steady for a second consecutive meeting, maintaining a restrictive monetary stance to combat inflation amid global economic uncertainties. The Monetary Policy Committee announced on Tuesday, July 21, 2026, that it would retain the Monetary Policy Rate at 26.5 percent following its two-day meeting in Abuja.

Governor Olayemi Cardoso, who chaired the meeting attended by all 11 committee members, stated the decision was unanimous. The committee also left all other key policy parameters unchanged, including the Cash Reserve Ratio for commercial banks at 45 percent and the asymmetric corridor around the MPR. Officials cited a need to preserve recent macroeconomic gains and monitor the impact of renewed geopolitical tensions, particularly in the Middle East, on global energy prices and domestic inflation.

The decision comes despite a marginal easing in Nigeria's headline inflation rate, which declined to 15.91 percent in June from 15.93 percent in May. Governor Cardoso noted this moderation suggests previous policy tightening is having an effect. However, he highlighted persistent concerns, as food inflation accelerated...