The Central Bank of Nigeria (CBN) has raised its benchmark interest rate by 25 basis points to 27.50%, marking the sixth rate hike this year. This decision aims to combat the rising inflation pressures in the country, with October 2024 data showing increases in headline, food, and core inflation both year-on-year and month-on-month.
This was disclosed by the Governor of the CBN, Mr. Yemi Cardoso, who is also the Chairman of the Monetary Policy Committee (MPC), following the conclusion of the MPC meeting in Abuja. The CBN’s Monetary Policy Committee expressed concern over the continued rise in prices, which is negatively affecting citizens’ income and welfare.
Cardoso stated that the Committee has decided unanimously to further tighten its monetary policies with the following measures: raising the MPR by 25 basis points to 27.5%, retaining the asymmetry corridor around the MPR at +500/-100 basis points, maintaining the Cash Reserve Ratio (CRR) for deposit money banks at 50% and for merchant banks at 16%, and keeping the liquidity ratio at 30%.
Cardoso reaffirmed the CBN’s commitment to measures aimed at tackling inflation, stabilizing the exchange rate, and supporting economic recovery.
