Analysts have also said that the decision to keep interest rates at 26.50 is hindering Nigerians’ access to cheap credit facilities and low-interest loans in banks, as the exceedingly high interest rates, up to 40%, charged by banks stifle the growth and expansion of businesses, particularly small and medium enterprises, thereby tanking the economy.
The Central Bank of Nigeria, CBN, has announced that it will retain the country’s Monetary Policy Rate, MPR, at 26.50 per cent for the second consecutive time.
CBN Governor, Olayemi Cardoso, made the announcement while addressing a press conference after the 306th Monetary Policy Committee, MPC, meeting in Abuja on Tuesday.
Recall that the apex bank pegged the MPR at 26.50 in May.
Cardoso disclosed that the MPC resolved not to change the lending rate after reviewing and analysing recent domestic and global economic developments.
According to the CBN chief, all 11 members of the committee attended the 306th meeting where the decision was made.
The decision means the CBN has maintained its tight monetary policy stance in a bid to sustain the moderation in inflation, stabilise the foreign exchange market, and consolidate recent macroeconomic gains.
The latest MPR decision by the MPC comes as the country’s inflation slowed to 15.91 per cent in June 2026. However, food inflation has remained high across Nigeria.
Analysts have also said that the decision to keep interest rates at 26.50 is hindering Nigerians’ access to cheap credit facilities and low-interest loans in banks, as the exceedingly high interest rates, up to 40%, charged by banks stifle the growth and expansion of businesses, particularly small and medium enterprises, thereby tanking the economy.
