The Central Bank of Nigeria (CBN) has raised its Monetary Policy Rate (MPR) by 50 basis points to 27.25 per cent from 26.75 per cent.
This is the fifth consecutive time the apex has raised interest rate this year.
The CBN Governor, Olayemi Cardoso disclosed this on Tuesday, after the apex bank’s 297th Monetary Policy Committee meeting held on the 23rd and 24th of September.
The meeting was held to review recent economic and financial developments, as well as assess its outlook for the year.
“The committee was unanimous in its decision to further tighten policy and thus decided as follows, one: raise the MPR to 27.25 per cent,” Cardoso said.
According to Cardoso, the asymmetric corridor will be retained around the MPR at +100/-300 basis points and the liquidity ratio at 30 per cent.
The Cash Reserve Ratio (CRR) for commercial banks was raised by 500 basis points to 50 percent, up from 45 percent. Merchant banks saw a smaller increase, with their CRR raised by 200 basis points to 16 percent, up from 14 percent.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
