The Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) has increased the country’s interest rate by 25 basis points to 27.50 percent, effective November 2024.CBN Governor Olayemi Cardoso announced the decision during a press conference on Tuesday, following the 298th MPC meeting in Abuja.
“The Committee was unanimous in its agreement to raise the monetary policy rate by 25 basis points to 27.50 percent,” he said. According to Governor Cardoso, the decision to raise the interest rate is aimed at combating inflation, which stood at 33.87 percent in October 2024.
This marks the sixth time the CBN has raised the interest rate since February 2024, as part of its efforts to curb rising price pressures and stabilize the exchange rate. In addition to the interest rate hike, the CBN retained the Cash Reserve Ratio (CRR) at 50 basis points.
The MPC also maintained the liquidity ratio (LR) at 30 percent and the asymmetric corridor at +500/-100 basis points around the Monetary Policy Rate (MPR).This development follows a similar interest rate hike of 50 basis points to 27.25 percent in September 2024.
Source: https://dailypost.ng
