The Central Bank of Nigeria (CBN) has raised the benchmark interest rate, the Monetary Policy Rate, MPR, from 27.25 per cent to 27.50 per cent.
The CBN Governor, Mr. Olayemi Cardoso, disclosed this on Tuesday at the end of the 298th Monetary Policy Committee, MPC meeting in Abuja.
According to him “The committee was unanimous in its decision to further tighten the policy and thus decided as follows: Raise the MPR by 25 basis points to 27. 50 percent from 27. 25 percent.
“Retain the Asymmetric Corridor around the MPR at +500 / -100 basis points. Retain the Cash Reserve Ratio, CRR of Deposit Money Banks at 50 percent and Merchant Banks at 16 percent; and retain the Liquidity Ratio at 30 percent.”
Giving reasons why CBN raised the interest rate again, Cardoso said the committee decided to further hike the rate because of the renewed inflationary pressures as the headline, food and core measures rose Year-on-Year last month, citing the latest report of the National Bureau of Statistics (NBS).
“The committee was particularly concerned that all three measures inched up on a month-to-month basis. Suggesting persistent price pressures with attendant adverse impacts on the income and welfare of citizens. Members therefore agreed unanimously to remain focused in addressing price developments,” he emphasized.
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The CBN boss was upbeat on the positive outcomes of CBN policies, as according to him, the increased remittances stood out as a clear indication that his administration’s policies were achieving desired results.
His words, “The committee noted the improvement in the external sector, reflected in the Current Account surplus, enhanced remittance and capital inflows which have impacted the External Reserves positively. These, therefore, suggest that key policy measures by both the monetary and fiscal authorities are yielding the desired outcomes.”
Cardoso disclosed that the nation’s External Reserves stood at $40. 88 billion as at November 26, 2024, up from $40. 06 billion in as of the end of October 2024.
Olamilekan Adigun is a graduate of Mass Communication with years of experience in journalism embedded in uncovering human interest stories. He also prioritises accuracy and factual reportage of issues.
