The Central Bank of Nigeria (CBN) Monetary Policy Committee has raised the interest rate by 50 basis points from 26.25% to 26.75%.
The Governor of the CBN, Olayemi Cardoso, announced this at the end of the apex bank’s 296th MPC meeting held in Abuja.
The MPC also pegged the Cash Reserve Ratio (CRR) for Deposit Money Banks at 45%, while that of merchant banks was put at 14%. The liquidity ratio was pegged at 30%.
The apex bank also adjusted the asymmetric corridor around the MPR from +100 to –300 basis points around the MPR to +500 and –100 basis points around the MPR.
Speaking on the reason for the 50-basis point hike, Mr. Yemi Cardoso, Chairman of the Monetary Policy Committee (MPC), noted recent events in the economy, such as inflation and the need to stabilize the foreign exchange market, as a rationale for the increase.
He further referenced recent policies of the federal government to import specific staple foods such as rice, maize, and wheat to help stem the rising food inflation but warned that the timeline should be followed in order not to stifle the gains made in local food production.
