Korede Abdullah in Lagos
The Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR) to 27.50% from 27.25% in a bid to curb rising inflation.
This decision was made during the Monetary Policy Committee (MPC) meeting held at the CBN headquarters in Abuja.
The MPR, which measures the benchmark interest rate, was raised by 25 basis points.
CBN Governor Yemi Cardoso announced that the MPC voted unanimously to raise the MPR, while retaining the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.
“The Committee was unanimous in its agreement to raise the monetary policy rate by 25 basis points to 27.50 percent,” Cardoso said
This move marks the fifth consecutive rate hike this year, with the CBN aiming to reduce inflationary pressures.
The committee recognized the moderation in the country’s year-on-year inflation rate in July and August 2024.
“The considerations of the meeting were held on the backdrop of renewed inflationary pressures as the headline food and core measures rose year on year in October 2024.
“Members therefore agreed unanimously to remain focused on addressing price developments,” Cardoso said.‘
The CBN’s decision to raise the MPR is expected to improve confidence and enable economic agents to plan in the medium to long-term.
However, the committee noted that more needs to be done to actualize the bank’s price stability mandate
