The Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR), which benchmarks interest rates in the country, to 27.50 per cent.

The interest rate was raised from 27.25 per cent by the Monetary Policy Committee (MPC) of the CBN.

CBN Governor Olayemi Cardoso announced this at a press conference after the committee’s meeting in Abuja on Tuesday, November 26, 2024.

Cardoso said the interest rate was raised by 25 basis points, adding that the committee also decided to hold all other parameters constant.

The MPC, therefore, retained the Cash Reserved Ratio (CRR) at 50 per cent for Deposit Money Banks (DMBs) and 16 per cent for merchant banks.

It also retained the Liquidity Ratio at 30 per cent and also put the Assymetric Corridor at +500/-100 basis points around the MPR.

Nigeria’s inflation rate rises to 33.8%

Cardoso said the decisions were unanimously adopted by all 12 members of the MPC who were present at the meeting.

Tuesday’s decision is the sixth consecutive tightening of the MPR since Cardoso assumed office as CBN Governor.

The first decision under Cardoso was an aggressive hike in the MPR by 400 basis points from 18.75 per cent to 22.75 per cent in February.

In March, the committee increased the MPR by 200 basis points to 24.75 per cent, followed by subsequent hikes to 26.25 in May, 26.75 per cent in July, and 27.25 per cent in September.

Cardoso has raised the MPR by 875 basis points since he assumed office.

These decisions are aimed at combating inflation, stabilising the economy, and promoting economic growth.

The Star