The Central Bank of Nigeria’s (CBN) Monetary Policy Committee has increased the country’s interest rate by 25 basis points, moving it from 27.25 percent in September 2024 to 27.50 percent in November 2024.
CBN Governor, Olayemi Cardoso, made this announcement during a press conference on Tuesday following the 298th MPC meeting held in Abuja.
He stated, “The Committee was unanimous in its decision to raise the monetary policy rate by 25 basis points to 27.50 percent.”
Cardoso explained that the decision to raise the interest rate was driven by the need to address inflation, which was recorded at 33.87 percent in October 2024. This marks the sixth interest rate hike by the CBN since February 2024.
Additionally, Cardoso announced that the Cash Reserve Ratio (CRR) would remain unchanged at 50 basis points. The liquidity ratio (LR) is also retained at 30 percent, with the asymmetric corridor staying at +500/-100 basis points around the MPR. Other monetary policy decisions were also maintained.
This move aims to curb inflation and stabilize the economy amidst ongoing economic challenges.
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