The Central Bank of Nigeria has further raised its Monetary Policy Rate(MPR) by 50 basis points to 27.25 per cent from 26.75 per cent “to moderate inflation” which stands at 32.15%.
This was revealed by the CBN Governor, Olayemi Cardoso after the apex bank’s 297th Monetary Policy Committee meeting held on the 23rd and 24th of September in Abuja 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.
The MPC also raised the Cash Reserve Ratio (CRR) by 50 basis points from 45% to 50% for Deposit Money Banks (DMBs) and from 14% to 16% for Merchant Banks.
The committee retained the Liquidity Ratio (LR) at 30% and the Asymmetric Corridor at +500/-100 basis points around the MPR.
Cardoso argued that the multiple hikes in interest rates in the last one year since he assumed office as CBN boss have helped to moderate inflation.
“There is no economic model that portends to take people out of poverty when inflation is accelerating at the level we have seen it. There is none. And for that reason, we do not intend to relent in ensuring that we bring it under control,” he said.
