The Central Bank of Nigeria’s monetary policy is increasingly being shaped by global geopolitical tensions, as the Middle East crisis complicates inflation management, delays interest rate cuts and heightens risks to exchange rate stability and economic growth, SAMI TUNJI reports
For the CBN, the ongoing Middle East crisis is not a distant geopolitical event. It is a direct threat to Nigeria’s inflation outlook, exchange rate stability, production costs and household purchasing power.
That link was central to the decision of the Monetary Policy Committee to retain the Monetary Policy Rate at 26.5 per cent after its 306th meeting in Abuja on 20 and 21 July 2026. The committee also retained the standing facilities corridor around the MPR at plus 50 and minus 450 basis points, while maintaining the Cash Reserve Requirement at 45 per cent for deposit money banks, 16 per cent for merchant banks and 75 per cent for
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