CBN Raises Interest Rate To 26.25 %

The Central Bank of Nigeria (CBN) has today raised the interest rate by 150 basis points from 24.75 per cent to 26. 25 per cent.

After the 2-day meeting of the bank’s Monetary Policy Committee (MPC), they agreed to increase the Monetary Policy Rate(MPR) for the third consecutive time to reduce the country’s increasing inflation levels which rose to 33.69% in April 2024.

New Monetary Policy Committee Members

This was disclosed by the CBN governor and the chairman of the committee Yemi Cardoso after committee’s 295th meeting on the 20th and 21st of May 2024.

The CBN governor added that the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBS) was retained at 45 per cent. The MPC also put the Asymmetric Corridor around the MPR at +100 and –300 basis points and retained the liquidity ratio at 30 per cent.

The CBN chief who admitted the rising inflation levels in the country said the key focus of the MPC meeting was to achieve price stability by using tools available to rein in inflation.

CBN Governor, Mr. Olayemi Cardoso at the National Assembly on Friday, February 9 2024
photo credit: CBN

He said the inflation pressure is being driven largely by food inflation, citing rising costs of transportation, infrastructure challenges, insecurity, and exchange rate issues as some of the factors affecting it.

Dolupo Balogun

Written by Boom RadioNG