Inflation: CBN Raises Interest Rates to 24.75%

The Central Bank of Nigeria (CBN) has raised the Monetary Policy Interest Rates by 200 basis points to 24.75% in an ongoing effort to curb Inflation pressures.

The Monetary Policy Committee (MPC) stated that addressing Nigeria’s food crisis requires dealing with food insecurity and implementing the federal government’s agricultural intervention programs to combat Inflation.

Olayemi Cardoso, the CBN Governor, revealed that the Cash Reserve Ratio (CRR) was raised to +100 to -300 basis points at the 296th MPC meeting held on Tuesday in Abuja.

The committee voted as follows: Raise the MPR by 400bps to 24.75% from 22.75%. Increase the asymmetric corridor to +100bps/-300 basic points.

The Central Bank of Nigeria (CBN) has retained the Cash Reserve Ratio (CRR) of commercial banks at 45%. However, the CRR of merchant banks has been adjusted upward from 10% to 14%.

The Apex Bank has increased its benchmark Interest Rates , the MPR, from 22.75% to 24.75% in February, which represents a 200 basis points increase..