The Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) has increased the monetary policy rate (MPR), which sets the benchmark for interest rates, from 26.75% to 27.25%.
CBN governor Olayemi Cardoso disclosed the 50 basis points hike during a press conference on Tuesday, September 24, 2024 following the committee’s 297th meeting in Abuja.
According to Cardoso, the adjustment aims to curb inflation further.
At the meeting, Cardoso stated that the committee maintained the asymmetric corridor at +500 and -100 basis points around the MPR.
He also said the cash reserve ratio (CRR) was raised from 45% to 50%, while the liquidity ratio remained unchanged at 30%.
Cardoso mentioned that the MPC plans to enhance its monitoring of future releases to manage their impact on price trends.
He also observed increased stability and alignment in exchange rates across various market segments, attributed to the bank’s firm monetary policy.
He said this would boost confidence, allowing economic participants to plan for the medium to long term.
Cardoso said:
The National Bureau of Statistics (NBS) reported on September 16 that Nigeria’s inflation rate dropped for the second consecutive month, reaching 32.2% in August 2024.
The MPC acknowledged the ongoing expansion of the money supply and emphasized the importance of controlling excess liquidity in the economy and addressing the pressures on foreign exchange demand.
Following CBN’s recent increase in borrowing costs, many Nigerians have taken to social media to react to the new interest rate hike.
See some of the reactions below:
Vincent Codeworks @vincentwap said:
oluwasoft @softmario1983 said:
9CEJOE@9ce_joe said:
mrwealthy @FOOT_PRINT_ said:
“This will further damage the naira & inflation will go harder ?$1 = #2,500”
T-s-n scott ??????@Tsn_scott said:
