The Central Bank of Nigeria (CBN) has further raised the Monetary Policy Rate (MPR) to 27.50 per cent, a decision influenced by the rising inflation in Africa’s biggest economy.
The apex bank took the hawkish stance on Tuesday at the 295th Meeting of the Monetary Policy Committee in Abuja.
In the September MPC meeting, the committee unanimously voted to raise the benchmark interest rate to 27.25 per cent considering surging inflation.
The new rate indicates that the MPR was raised by a 25 basic point
The Governor CBN Yemi Cardoso said the MPC voted unanimously to raise the MPR by 25 basis points from 27.25 per cent to 27.50 per cent.
Cardoso noted that the Cash Reserve Ratio (CRR) was unanimously voted to be retained at 50 per cent for Deposit Money Banks (DMB) and 16 per cent for Merchant Banks.
He added that the MPC retained the Liquidity Ratio (LR) at 30 per cent and Asymmetric Corridor at +500/-100 basis points around the MPR.