At the end of the Monetary Policy Committee (MPC) meeting, it was concluded interest rate hike would significantly aid in taming the inflation rate.
The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate, which benchmarks interest rates, from 22.75% to 24.75%.
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CBN Governor, Olayemi Cardoso, disclosed this on Tuesday at the 294th meeting of the MPC press briefing in Abuja.
MPC Raises Interest Rate
The MPR is the baseline interest rate in an economy, every other interest rate used within it is built on it.
Cardoso said the move was to ensure that the country’s rising inflation rate, which stood at 31.70% in February, was moderated.
According to him, the committee raised the interest rate by 200 basis points to tackle rising inflation.
He said: “The committee voted as follows: Raise the MPR by 400bps to 24.75 from 22.75%. Increase the asymmetric corridor to +100bps/-300 basic points.
“Retain the Cash Reserve Ratio of Deposit Money Banks at 45% and adjust the CRR of Merchant Banks from 105 to 145.”
The CBN Monetary Policy Committee raised the country’s interest rate in February to 22.75%.
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This meeting marks the second MPC meeting for 2024 and also the 294th meeting of the CBN.
It is understood that the committee will next meet between May 20 and 21, 2024.
