The Central Bank of Nigeria (CBN) has raised the interest rate by 150 basis points from 24.75 per cent to 26. 25 per cent.
The Governor of the CBN, Yemi Cardoso stated this at the press briefing following the 295th Monetary Policy Committee (MPC) meeting of the bank on Tuesday, May 21.
Cardoso, who is also the MPC chairman said the meeting was held on the 20th and 21st of May 2024 to review recent economic and financial developments and assess risks to the outlook.
“The committee’s decisions are as follows: 1. Raise the MPR by 150 basis points to 26. 25 per cent from 24.75 per cent,” he said.
Cardoso, however, said the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBS) was retained at 45 per cent.
The MPC also put the Asymmetric Corridor around the MPR at +100 and –300 basis points. It retained the liquidity ratio at 30 per cent.
The CBN chief who admitted the rising inflation levels in the country said the key focus of the MPC meeting was to achieve price stability by using tools available to rein in inflation.
He said the inflation pressure is being driven largely by food inflation, citing rising costs of transportation, infrastructure challenges, security challenges, and exchange rate issues as among the factors affecting food inflation.
