From Victor Osula, Abuja
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR), the country’s benchmark interest rate, at 26.5 percent.
The decision was announced at the end of the Committee’s 306th meeting, held in Abuja on July 20 and 21, 2026.
All 11 members of the Committee attended the two-day meeting, during which they reviewed recent domestic and global economic developments before unanimously deciding to leave the benchmark lending rate unchanged.
The decision extends the CBN’s tight monetary policy stance as the apex bank seeks to sustain the moderation in inflation, preserve exchange rate stability and consolidate recent macroeconomic gains.
The MPR serves as the benchmark for interest rates across the economy, influencing the cost of borrowing for businesses and households, as well as returns on savings and fixed-income investments.
The Committee’s decision comes against the backdrop of easing inflationary pressures, improving foreign exchange market conditions and stronger external reserves, even as policymakers continue to monitor global economic uncertainties and domestic price developments.
Simple Summary of the 306th CBN Monetary Policy Committee (MPC) Meeting.
The Central Bank of Nigeria (CBN) has decided not to change its key interest rate, keeping the Monetary Policy Rate (MPR) at 26.5%.
What does this mean?
The interest rate used by the CBN to influence borrowing and lending in the economy remains the same. This means ban
Monetary Policy Rate, MPR : Remains at 26.5%.
Standing Facilities Corridor: Remains at +50/-450 basis points around the MPR.
This determines the rates at which banks can borrow from or deposit funds with the CBN.
Cash Reserve Requirement (CRR):
45% for Deposit Money Banks.
16% for Merchant Banks.
Liquidity Ratio for Non-TSA Public Sector Deposits: Remains at 75%.
The CBN is continuing its efforts to keep inflation under control,making borrowing costs for businesses and individuals to remain high for now.
Also, savings and fixed-income investments may continue to offer relatively attractive returns.
Overall, the decision aims to maintain stability in the economy while monitoring inflation and other economic developments.
