CBN maintains benchmark interest rate at 26.5% – THIS

By Victor Osula, Abuja

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has maintained the monetary policy rate (MPR), the country’s benchmark interest rate, at 26.5%.

The decision was announced at the end of the 306th meeting of the Committee, held in Abuja on 20 and 21 July 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 restrictive monetary policy as the apex bank seeks to sustain inflation moderation, preserve exchange rate stability and consolidate recent macroeconomic gains.

The MPR serves as a 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 amid 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 meeting of the CBN Monetary Policy Committee (MPC).

The Central Bank of Nigeria (CBN) has decided not to change its key interest rate, maintaining the monetary policy rate (MPR) at 26.5%.

What does this mean?

The interest rate used by the CBN to influence lending and borrowing in the economy remains the same. This means prohibition

Monetary policy rate, MPR: remains at 26.5%.

Permanent 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.

Liquidity Reserve Requirement (CRR):
45% for depository 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, ensuring that borrowing costs for businesses and individuals remain high for now.

Additionally, savings and fixed income investments could continue to offer relatively attractive returns.

Overall, the decision aims to maintain the stability of the economy while monitoring inflation and other economic developments.

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