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CBN’s MPC increases Interest rate to 24.75%

Boom RadioNG | March 26, 2024

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has today increased the benchmark interest rate by 200 basis points making it 24.75 percent.

This was disclosed by the CBN governor, Yemi Cardoso in a communique after the second MPC meeting of his tenure in the federal capital territory, Abuja.

The new interest rate is an increase from the 22.75 percent announced by the MPC about a month ago and the second rate hike by the current committee.

The CBN governor also announced the retention of the Cash Reserve Ratio (CRR) of deposit money banks at 45 percent but adjusted the CRR of merchant banks from 10 percent to 14 percent and retained the liquidity ratio at 30 percent.

New Monetary Policy Committee Members

According to the apex bank chief, the moves are part of efforts to combat the country’s rising inflationary rate which was pegged at 31.70 percent in February.

Also noted that MPC members believe the headline inflation in the country is triggered mostly by a hike in the cost of food.

“The committee therefore was of the view that addressing food insecurity is key to containing the current inflationary pressures,” he said while commending the Federal Government’s efforts at curbing food insecurity including the distribution of palliatives.

The next MPC meeting will be held between the 20th and 21st of May, 2024.

 

Dolupo Balogun

Written by Boom RadioNG

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