November 26, 2024
Nigeria’s Central Bank Raises Monetary Policy Rate to 27.50% to Tackle Inflation
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Nigeria’s Central Bank Raises Monetary Policy Rate to 27.50% to Tackle Inflation

Nigeria’s Central Bank Raises Monetary Policy Rate to 27.50% to Tackle Inflation
A photo collage of the Central Bank of Nigeria (CBN) Governor, Yemi Cardoso and the logo CBN logo

The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) by 25 basis points to 27.50%, up from 27.25%, in a move aimed at curbing inflation. The decision was made during the Monetary Policy Committee (MPC) meeting, which took place in Abuja on Tuesday. 

Governor Yemi Cardoso announced the hike, noting that the MPC had unanimously voted for the increase. The CBN also maintained the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks, while keeping the Liquidity Ratio at 30%.

Also Read: Enugu Residents Appeal to FG, CBN Over Worsening Cash Scarcity

This marks the sixth interest rate hike since February 2024. The bank’s previous adjustment in September raised the MPR to 27.25% after inflation showed signs of slowing, but recent data from the National Bureau of Statistics indicates inflation rose to 33.88% in October 2024, up from 32.7% in September.

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