Home Business CBN Raises Interest Rate to 27.5% to Curb Inflation

CBN Raises Interest Rate to 27.5% to Curb Inflation

by ArmadaNews
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The Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR) to 27.50 per cent from 27.25 per cent as part of measures to check the surging inflation.

Yemi Cardoso, the CBN governor  announced this in Abuja shortly after the MPC meeting.

According to the CBN boss, the MPC voted unanimously to further hike the MPR by 25 basis points from 27.25% to 27.50%; and retain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.

The MPC also retained the Liquidity Ratio (LR) at 30% and Asymmetric Corridor at +500/-100 basis points around the MPR.

Cardoso said: “The considerations of the meeting were held on the backdrop of renewed inflationary pressures as the headline food and core measures rose year on year in October 2024. Members therefore agreed unanimously to remain focused on addressing price developments.”

This is the sixth time the apex bank has increased the interest rate since February 2024. In September, the bank raised  the rate to 27.25% following a drop in the country’s inflation level in August 2024.

A recent report by the National Bureau of Statistics (NBS) pegged Nigeria’s inflation levels at  33.88% for October 2024, up from 32.7% in September 2024.

 

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