By Emmanuel Kwada
The Central Bank of Nigeria (CBN) has increased the monetary policy rate (MPR) by 25 basis points to 27.50% from 27.25%. This decision was made during the last Monetary Policy Committee (MPC) meeting of the year, held at the CBN headquarters in Abuja.
The monetary policy rate (MPR) by 25 basis points to 27.50% from 27.25%
CBN Governor Yemi Cardoso announced that the MPC unanimously voted to raise the MPR, while retaining the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks. The Liquidity Ratio (LR) was also retained at 30%, with the Asymmetric Corridor remaining at +500/-100 basis points around the MPR.
This move is aimed at controlling inflation and stabilizing the economy.
The CBN has been working to reduce inflation, which increased to 18.60% in June 2022. The MPC has been adjusting the monetary policy rate to achieve this goal, having raised it twice in Q1 2024 to 22.75% and 24.75%.
Details to follow…
