The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR), its benchmark interest rate, by 50 basis points to 27.25 percent to further control inflation.
CBN Governor Olayemi Cardoso announced this decision at a press conference following the conclusion of the Monetary Policy Committee meeting in Abuja on Tuesday.
Cardoso cited rising energy costs, food inflation, and the effects of recent flooding as key reasons for tightening monetary policy. “The committee was unanimous in recognizing that a lot more is required to actualize the bank’s price stability mandate,” he said.
In addition to raising the MPR, the CBN increased the cash reserve ratio for deposit money banks from 45 percent to 50 percent and for merchant banks from 14 percent to 16 percent while the liquidity ratio was retained at 30 percent.
Despite two consecutive months of declining inflation, with the rate easing to 32.2 percent in August, Cardoso noted that core inflation remained elevated due to surging energy prices. He emphasized that continued monetary tightening was necessary to restore price stability and boost confidence in Nigeria’s economic outlook
—Ezinwanne Onwuka reports for TruthNigeria from Abuja.
