Nigeria's MPC keeps rate at 26.5% amid renewed Middle East tensions, despite June inflation drop

The Monetary Policy Committee of the Central Bank of Nigeria unanimously voted to retain the Monetary Policy Rate at 26.5 per cent during its 306th meeting. The committee also kept the Standing Facilities Corridor unchanged at plus or minus 50 to 450 basis points around the rate. Additionally, it retained Cash Reserve Requirement levels for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent. Governor Olayemi Cardoso justified the decision by stating that while headline inflation moderated marginally in June 2026, global uncertainties have heightened primarily due to renewed hostilities in the Middle East. Committee members noted these evolving developments warrant maintaining a cautious monetary policy stance. Although stakeholders awaited further data ahead of the September 307th meeting, they observed that factors had substantially not changed. Meanwhile, headline inflation further moderated in July to 15.43 per cent, down from 15.91 per cent in June. Despite this moderation, the MPC decided against altering any monetary parameters.