Summary:

• Monetary Policy Rate: 26.50%.
• Asymmetric Corridor: +50/-450 basis points around the MPR.
• CRR of Deposit Money Banks: 45.00%.
• CRR of Merchant Banks: 16.00%.
• Liquidity Ratio: 30.00%.
• CRR of non-TSA public sector deposits: 75.00%

Market Implication

Fixed Income

High-yield Treasury Bill Instruments should stay attractive while rates hold as investors remain keen to lock in higher yields.

Shorter tenors saw far less interest, as real returns there look thin against still-elevated food inflation. Borrowing costs, including for commercial paper, should stay high, with future yield direction hinging on system liquidity, inflation trends, and government’s borrowing pace.

Equities

We expect the MPC decision to have a neutral effect on the Equities market as Banks and other financial institutions listed on the NGX will continue to benefit from high yield fixed income instruments and interest from loans. On this , we don’t expect capital outflow from the equities market to the fixed income market. The NGX All-Share Index has sustained a year-to-date return of 58.51% led by banking, oil & gas, industrial, and telecom stocks, suggesting investors remain more confident in the equities market.

We expect this momentum to hold near-term, supported by stable macro conditions and anticipation around the Dangote Refinery’s planned listing on the NGX, which could draw fresh investor interest. That said, following such a strong run, profit-taking or a pullback in specific stocks remains a possibility.

Click here “July 2026 MPC Decision – Holding the Line Against Inflation” to view the full report.