The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has increased the country’s benchmark interest rate by 25 basis points, raising it to 27.50% in November from 27.25% in September 2024.
CBN Governor Olayemi Cardoso announced the decision during a press briefing on Tuesday following the 298th MPC meeting held in Abuja.
“The Committee was unanimous in its agreement to raise the monetary policy rate by 25 basis points to 27.50%,” Cardoso stated.
The move aims to address rising inflation, which stood at 33.87% as of October 2024. Cardoso also confirmed that the Cash Reserve Ratio (CRR) for deposit money banks remains at 50% and has been adjusted from 14% to 16% for merchant banks.
Additionally, the liquidity ratio is maintained at 30%, while the asymmetric corridor remains unchanged at +500/-100 basis points around the MPR.
“All other monetary policy decisions were retained,” the governor added.
At its previous meeting in September, the MPC raised the MPR by 50 basis points to 27.25%, citing concerns over core inflation, fiscal deficits, money supply growth, and rising food prices. Despite a downward trend in headline inflation during that period, core inflation remained elevated due to energy costs and other structural challenges.
The Central Bank’s latest decision reflects its continued efforts to stabilize the economy and combat inflationary pressures.
