The Central Bank of Nigeria (CBN) has maintained its benchmark interest rate at 26.5%, as part of ongoing efforts to manage inflation and stabilise the economy.

The decision was announced following the bank’s latest monetary policy meeting, where members reviewed key economic indicators including inflation trends, exchange rate stability and overall market conditions.

Officials said the rate retention reflects the bank’s cautious stance in balancing price stability with economic growth concerns.

In the foreign exchange market, the naira remained relatively stable, trading at around ₦1,371 to the dollar, according to official market data.

The CBN has continued interventions aimed at improving liquidity in the foreign exchange market and reducing volatility that has affected businesses and import-dependent sectors.

Economic analysts say the combination of a high interest rate and tighter monetary policy is part of broader measures to curb inflationary pressures and restore investor confidence.

However, some experts argue that sustained high rates may also increase borrowing costs for businesses and slow down economic expansion.

The apex bank maintains that its policy direction is focused on long-term stability and strengthening macroeconomic fundamentals.