In a move aimed at managing inflation and stabilizing the Nigerian economy, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has decided to raise the benchmark interest rate by 25 basis points. The new Monetary Policy Rate (MPR) is now set at 27.50%, up from the previous 27.25%.
The announcement was made by the CBN Governor, Mr. Yemi Cardoso, during the MPC’s final meeting of the year, held on Tuesday, November 26, at the central bank’s headquarters in Abuja. Governor Cardoso explained that the decision was made unanimously by the committee in response to prevailing economic conditions, including efforts to curb rising inflation and stabilize the currency.
In addition to the MPR adjustment, the CBN also made the following key decisions:
The Cash Reserve Ratio (CRR), which dictates the percentage of deposits that commercial banks must hold with the central bank, remains unchanged at 50% for Deposit Money Banks and 16% for Merchant Banks.
The Liquidity Ratio (LR) is also held steady at 30%, which determines the proportion of funds that banks must keep in liquid assets to meet short-term obligations.
The Asymmetric Corridor, the range within which the CBN lends to commercial banks, has been maintained at +500/-100 basis points around the MPR.
This latest adjustment marks the CBN’s ongoing efforts to address inflationary pressures and stimulate economic growth, while also ensuring financial stability in the country. The central bank’s policy direction remains closely watched by investors, businesses, and the general public, as the nation navigates its economic challenges in the final quarter of the year.
