Nigeria's Central Bank Holds Rate at 26.5% Amid Global Shocks

The Central Bank of Nigeria (CBN) kept its benchmark Monetary Policy Rate at 26.5% for a second consecutive meeting, the 306th Monetary Policy Committee (MPC) session in Abuja. The decision follows a modest easing of headline inflation to 15.91% in June 2026, the first decline after three months of increases.

Governor Olayemi Cardoso said the bank is maintaining a cautious stance because renewed hostilities in the Middle East and a Gulf energy crisis have heightened global uncertainty and could push up oil‑related costs. Despite these risks, external reserves rose to about $52.5 billion, enough to cover roughly 11 months of imports, and the economy showed resilience, with real GDP expanding about 3.9% in the first quarter of 2026, driven by the non‑oil sector.

The MPC’s unanimous vote to leave the rate unchanged reflects its aim to secure a single‑digit inflation target by early 2027 while preserving exchange‑rate stability and supporting macro‑economic gains.