The Bank of Nigeria (CBN) Monetary Policy Committee (MPC) has increased the interest rate by 50 basis points, bringing it to 27.25 percent. This marks the fifth consecutive hike since February 2024.
CBN Governor Olayemi Cardoso announced the decision during a press briefing at the conclusion of the 297th MPC meeting in Abuja on Tuesday. Additionally, the Cash Reserve Ratio (CRR) was raised by 50 basis points, from 45 percent to 50 percent for Deposit Money Banks (DMBs), and from 14 percent to 16 percent for Merchant Banks. The Liquidity Ratio (LR) remains unchanged at 30 percent, with the Asymmetric Corridor maintained at +500/-100 basis points around the MPR.
Economist Muda Yusuf, Executive Director of the Centre for the Promotion of Private Enterprise, had previously called on the CBN to halt further interest rate increases.
Since February 2024, the CBN has implemented four rate hikes, moving the interest rate from 22.75 percent to 26.75 percent. Prior to Governor Cardoso’s appointment in September 2023, the interest rate stood at 18.75 percent.
