For the sixth time in 2024, the Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR), citing inflationary trends.
CBN governor Yemi Cardoso announced in Abuja Tuesday after the Monetary Policy Committee meeting that the interest rate has been hike to 27.50 per cent from 27.25 per cent as part of efforts to combat surging inflation.
Cardoso said the MPC voted unanimously to raise the MPR by 25 basis points from 27.25% to 27.50%; and retain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.
“The Committee was unanimous in its agreement to raise the monetary policy rate by 25 basis points to 27.50 percent,” Cardoso said.
The CBN chief also said the MPC retained the Liquidity Ratio (LR) at 30% and Asymmetric Corridor at +500/-100 basis points around the MPR.
“The considerations of the meeting were held on the backdrop of renewed inflationary pressures as the headline food and core measures rose year on year in October 2024. Members therefore agreed unanimously to remain focused on addressing price developments,” Cardoso said.
