The Central Bank of Nigeria (CBN) has raised its Monetary Policy Rate (MPR) by 50 basis points, increasing it from 26.75% to 27.25%.
This decision was announced by CBN Governor, Olayemi Cardoso, following the 297th Monetary Policy Committee (MPC) meeting held on September 23rd and 24th to assess the country’s economic and financial developments, as well as review its outlook for the remainder of the year.
Governor Cardoso emphasized that the committee unanimously agreed to further tighten monetary policy to address ongoing economic challenges. “The committee was unanimous in its decision to further tighten policy and thus decided as follows: raise the MPR to 27.25%,” Cardoso said.
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This marks the fifth time the CBN has raised interest rates in 2024, as part of its efforts to curb inflation and stabilize the economy. In addition to the MPR increase, Cardoso announced that the asymmetric corridor around the MPR will be maintained at +100/-300 basis points. The Cash Reserve Ratio (CRR) will remain at 45%, while the Liquidity Ratio (LR) stays unchanged at 30%.
Further details on the outcome of the MPC meeting and the impact of these policy changes on the Nigerian economy are expected to be released soon.