The Central Bank of Nigeria (CBN) has decided to maintain its key rate at 26.50%, following the 306th meeting of its Monetary Policy Committee (MPC) held on July 20 and 21, 2026 in Abuja. This is the second consecutive hold after the one in May 2026, in a context marked by the desire to consolidate the deflationary trend initiated several months ago.
In addition to the key rate, the Committee maintained the corridor of permanent facilities at +50/-450 basis points, the Cash Reserve Ratio (CRR) at 45% for commercial banks and 16% for merchant banks, as well as the liquidity ratio at 30%.
The decision comes as Nigeria’s annual inflation stood at 15.91% in June 2026, down from 15.93% in May, according to the National Bureau of Statistics (NBS). While the downward trend is confirmed, its pace is deemed insufficient by the CBN to justify an immediate easing. The institution particularly fears a premature relaxation that could weaken the naira, revive price tensions and compromise achievements in terms of macroeconomic stability.
Governor Cardoso reaffirmed the need for a “prudent and vigilant” approach, emphasizing that external shocks – especially geopolitical tensions in the Middle East and their impact on energy prices – continue to weigh on inflation prospects. However, he did not rule out future rate cuts, indicating that monetary policy could “begin to moderate” as deflation consolidates.
