The Central Bank of Nigeria (CBN) has decided to keep the country’s benchmark interest rate unchanged at 26.5 per cent, as policymakers continue efforts to control inflation and maintain stability in the economy.
The decision was announced by the CBN Governor, Olayemi Cardoso, after the Monetary Policy Committee (MPC) concluded its 306th meeting in Abuja.
According to the governor, the committee agreed to retain the Monetary Policy Rate (MPR) at 26.5 per cent, marking the second consecutive time the rate has remained unchanged.
“The Committee decided as follows: retain the monetary policy rate at 26.5 per cent,” Cardoso stated after the meeting.
The latest decision shows that the apex bank is maintaining a cautious approach despite recent signs that inflation may be slowing down. The CBN has continued to use interest rate decisions as a major tool to manage rising prices, control money supply, and support economic stability.
The interest rate was previously reduced by 50 basis points in February 2026, giving businesses and consumers a slight relief after a period of tight monetary policy. However, the MPC has now chosen to maintain the current rate while monitoring economic conditions.
The decision comes shortly after Nigeria recorded a small improvement in its inflation figures. Data from the National Bureau of Statistics (NBS) showed that headline inflation dropped slightly to 15.91 per cent in June 2026 from 15.93 per cent in May.
Although the decline was small, it represented the first fall in inflation after three consecutive months of increases.
Inflation had climbed 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 the latest reduction.
Economic analysts believe the CBN’s decision reflects the need to balance inflation control with economic growth. Keeping interest rates high can help reduce inflation by making borrowing more expensive and slowing excessive spending. However, it can also increase the cost of loans for businesses and individuals.
For businesses, especially small and medium-sized enterprises, the interest rate decision remains important because borrowing costs affect expansion plans, investment decisions, and daily operations. A high lending environment can make it more difficult for companies to access affordable financing.
Investors and financial markets are also watching the CBN’s policy direction closely, as interest rate changes influence the value of the naira, government borrowing costs, and foreign investment decisions.
The MPC is expected to continue reviewing inflation trends, economic growth, exchange rate conditions, and other key indicators before making future policy decisions.
As Nigeria works toward achieving stronger economic stability, the CBN faces the challenge of reducing inflation while ensuring businesses and households have enough support to grow.
The decision to maintain the 26.5 per cent benchmark rate signals that the central bank remains focused on fighting inflation while taking a careful approach toward monetary policy adjustments.
