The Central Bank of Nigeria’s Monetary Policy Committee retained the benchmark Monetary Policy Rate at 26.5% at its 306th meeting (20–21 July 2026), citing heightened global uncertainty from renewed Middle East hostilities despite headline inflation moderating to 15.91% in June 2026.
Policy Details
What Changes
MPR held at 26.5% (unchanged since the 50bps cut to 26.5% at the February 2026 meeting); Cash Reserve Requirement held at 45% for Deposit Money Banks, 16% for Merchant Banks, 75% for non-TSA public sector deposits; standing facilities corridor held at +500/-450bps.
Why It Matters
Signals the CBN's continued preference for price and exchange-rate stability over near-term monetary easing, despite market expectations building for a cutting cycle given moderating inflation.
Expected Impact
Keeps borrowing costs elevated for businesses and government; supports naira stability and has slowed M3 money supply growth to 13.65% y/y in June 2026 (from 15.56% a year earlier); T-bill and OMO yields remain elevated (17–21% range).
Risks / Uncertainties
Analysts (Businessday) expect rates to stay unchanged through the rest of 2026; renewed Middle East hostilities and their effect on oil prices remain the primary risk the CBN is watching.