The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) rose from its 298th meeting in Abuja on Tuesday with a unanimous decision to further raise interest rate by 25 basis points to 27.50 per cent from 27.25 per cent, in a strategic effort to battle the raging inflation, stabilise the economy and plant it on progress path.
The Governor of CBN and Chairman of the MPC, Yemi Cardoso, made the disclosure while reading the communique to the media. Cardoso revealed that the committee resolved to keep all other monetary policy parameters unchanged.
Consequently, the MPC maintained the Cash Reserve Ratio (CRR) at 50 percent for Deposit Money Banks (DMBs) and 16 percent for merchant banks, upheld the Liquidity Ratio at 30 percent, and retained the Asymmetric Corridor at +500/-100 basis points around the Monetary Policy Rate (MPR).
He further disclosed that these decisions received unanimous approval from all 12 MPC members present at the meeting. Tuesday’s decision marks the sixth consecutive increase in the Monetary Policy Rate (MPR) under Cardoso’s leadership as CBN governor.
