INTEREST RATE INCREASED BY CBN TO 24.75%

Babatunji Wusu –

The Monetary Policy Rate, which sets interest rates, was increased by the Central Bank of Nigeria (CBN) from 22.75 percent to 24.75 percent.
This was revealed by CBN Governor Olayemi Cardoso on Tuesday during the Monetary Policy Committee (MPC) press briefing, which was the 294th meeting held in Abuja.

Every other interest rate that is utilized in an economy is based on the MPR, which serves as its foundation.

According to the head of the central bank, the action was taken to make sure that the nation’s growing inflation rate—which was recorded at 31.70 percent in February—was restrained.

According to Cardoso, the MPC increased interest rates by 200 basis points in an attempt to combat growing inflation.

“The committee voted as follows,” he stated. Increase the MPR from 22.75 percent to 24.75 percent by 400bps. The asymmetric corridor should be extended to +100bps/-300 basic points.

“Reduce the Cash Reserve Ratio of Merchant Banks from 10% to 14% and maintain the Cash Reserve Ratio of Deposit Money Banks at 45%.”

In February, the country’s interest rate was increased to 22.75 percent by the CBN MPC.

This meeting is the 294th CBN meeting and the second MPC meeting of 2024.

Details to follow.