The Central Bank of Nigeria (CBN) has raised the country’s monetary policy rate by 25 basis points, bringing it to 27.50% from 27.25%. This decision was announced on Tuesday by CBN Governor Olayemi Cardoso during a press briefing following the 298th Monetary Policy Committee (MPC) meeting.
“This adjustment reflects the unanimous decision of the Committee to address the inflationary pressures facing the economy,” Governor Cardoso stated. Inflation in Nigeria reached 33.87% in October 2024, prompting the apex bank’s latest intervention.
Monetary Policy Rate (MPR): Increased to 27.50% (up from 27.25%).
Cash Reserve Ratio (CRR): Maintained at 50%.
Liquidity Ratio (LR): Retained at 30%.
Asymmetric Corridor: Held at +500/-100 basis points around the MPR.
This marks the sixth consecutive interest rate hike since February 2024, demonstrating the CBN’s aggressive stance in combating inflation. In its previous meeting in September 2024, the committee raised the rate by 50 basis points to 27.25%.
The decision underscores the CBN’s commitment to stabilizing the economy amidst persistent inflationary pressures. By raising the MPR, the bank aims to tighten monetary conditions, curbing excess liquidity in the financial system.
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