February 27, (THEWILL) – The Central Bank of Nigeria, CBN, has raised the monetary policy rate (MPR) to 22.75 percent.
This represents 400 basis points increase from the 18.75 percent benchmark it has been since September 2023
The announcement was made by CBN governor Yemi Cardoso, at the end of the first Monetary Policy Committee (MPC) meeting under his leadership of the apex bank since September 2023.
THEWILL recalls that in 2023, the MPC implemented a strategy of gradually increasing the MPR over four consecutive meetings.
This culminated in a significant rate of 18.75 percent by the end of the year.
Cardoso said that the Cash Reserves Ratio (CRR) and Liquidity Ratio, stayed constant throughout the time despite these aggressive efforts, with the CRR remaining at 32.5 percent and the Liquidity Ratio at 30.0 percent
Analysts had predicted a significant increase in MPR to address the high inflationary rate that hit 29.9 percent in January 2024.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
