The monetary policy committee (MPC) of the Central Bank of
Nigeria (CBN) has again retained the monetary policy rate (MPR) at 26.5
percent.
Olayemi Cardoso, CBN’s governor, announced the committee’s
decision at a press conference on Tuesday after the panel’s 306th meeting in
Abuja.
This is the second time the CBN committee has left the
interest rate unchanged in 2026.
The MPC also retained the asymmetric corridor around the MPR
at +500/-100 basis points, the cash reserve ratio (CRR) at 40.5 percent for
deposit money banks and 16 percent for merchant banks, while leaving the
liquidity ratio unchanged at 30 percent.
Explaining the decision, Cardoso said maintaining the
current policy stance would enable it to assess incoming economic data before
making further adjustments.
“The committee’s decision to maintain the current policy
stance followed a thorough assessment of the balance of risks,” the CBN
governor said.
“Although the headline inflation moderated marginally in
June 2026, global uncertainties have heightened due mainly to the renewed
hostilities in the Middle East. In view of the evolving developments,
maintaining a cautious monetary policy stance remains appropriate.”
Cardoso, also the MPC chairman, said while geopolitical
tensions continue to pose upside risks to inflation, Nigeria’s economy has
remained resilient due to reforms implemented by both fiscal and monetary
authorities.
“Available evidence suggests that the Nigerian economy has
remained largely resilient to the external shocks, reflecting the gains from
prior reforms implemented by the fiscal and monetary authorities,” the governor
said.
He said the committee also acknowledged improved
coordination between the federal government and the CBN, saying stronger policy
alignment would enhance macroeconomic stability.
“Members thus noted that greater alignment between fiscal
and monetary policies would enhance policy effectiveness and support the
achievement of overall macroeconomic objectives,” he said.
“The MPC welcomed the positive outcome of the banking sector
recapitalisation exercise, noted improvement in the resilience of the banking
system, as reflected in key prudential and financial soundness indicators.”
Cardoso said the committee projected that inflation would
continue to moderate but warned that a prolonged escalation of the Middle East
conflict remains the biggest threat to the outlook.
According to the economist, the MPC urged the apex bank to
sustain close supervision of lenders “to preserve financial sector soundness
and mitigate potential risks to financial stability”.
He also reaffirmed the panel’s commitment to price and
financial system stability, adding that the MPC remains prepared to adjust
policy if macroeconomic conditions warrant.
The latest monetary policy position comes after the
country’s inflation rate dropped, for the first time in three months, to 15.91
percent in June 2026.
Economists had advised the CBN to maintain the current
interest rate due to surging food prices.
Muda Yusuf, chief executive officer (CEO) of the CPPE, said
while headline inflation has broadly stabilised and core inflation continues to
moderate, food prices have resumed an upward trajectory.
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