The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR) by 400 basis points to 22.75% from the previous rate of 18.75%. This was made known to journalists on Tuesday by the CBN Governor, Olayemi Cardoso, immediately after the first MPC meeting of the year.
He said, “All 12 members of the Committee decided to further tighten monetary policy by raising the MPR by 400 basis points to 22.75 per cent from 18.75 per cent. Adjust the asymmetric corridor around the MPR to +100 to -700 from +100 to -300 basis points.
“The Committee also raised the cash reserve ratio from 32.5 per cent to 45 per cent while retaining the liquidity ratio at 30 per cent.”
Cardoso stated that the new MPR is part of efforts to tackle the country’s inflation which is at 29.90 per cent.
The MPR has been 18.75 per cent since the previous MPC meeting, which was held in July 2023.
