The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) to 27.50%, marking a slight increase from the previous 27.25%.
This decision, announced by CBN Governor Olayemi Cardoso at the conclusion of the Monetary Policy Committee (MPC) meeting in Abuja, is the sixth hike in 2024.
Cardoso revealed that the MPC voted unanimously to increase the MPR by 25 basis points while maintaining other key policy parameters. The Cash Reserve Ratio (CRR) remains at 50% for Deposit Money Banks and 16% for Merchant Banks, while the Liquidity Ratio (LR) stays at 30%. The Asymmetric Corridor also remains at +500/-100 basis points around the MPR.
“The Committee was unanimous in its agreement to raise the monetary policy rate by 25 basis points to 27.50 percent,” Cardoso stated.
The move comes amid renewed inflationary pressures, with October 2024 witnessing year-on-year increases in headline, food, and core inflation. According to Cardoso, addressing rising prices remains the committee’s primary focus.
Out of 12 MPC members, 11 voted in favor of the rate hike during the 154th meeting, highlighting a strong consensus on tackling inflation while navigating the complexities of Nigeria’s economic landscape.