The Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR) from 27.25% to 27.50% in a bid to address rising inflation.
This decision was announced by the CBN Governor, Yemi Cardoso, during the Monetary Policy Committee (MPC) meeting in Abuja on Tuesday.
The move marks the sixth interest rate hike by the CBN in 2024 and comes as Nigeria’s inflation rate climbed to 33.88% in October, up from 32.7% in September, according to the National Bureau of Statistics (NBS).
The apex bank retained other key monetary parameters, including the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks, as well as the Liquidity Ratio (LR) at 30%.
Cardoso explained that the MPC’s decision was unanimous, emphasizing the urgency to curb inflationary pressures fueled by higher transportation costs and escalating food prices.
“The Committee agreed unanimously to raise the monetary policy rate by 25 basis points to 27.50 percent,” he stated.
The NBS recently highlighted that October’s inflation figures represent a 1.18 percentage point increase month-on-month and a 6.55 percentage point rise year-on-year compared to October 2023, when inflation stood at 27.33%.
This latest adjustment follows the CBN’s September rate hike to 27.25%, implemented after a slight dip in inflation in August. Analysts suggest that the consistent rate hikes underscore the CBN’s resolve to stabilize prices and restore economic confidence.
With inflationary pressures persisting, Cardoso reaffirmed the MPC’s commitment to closely monitor price developments and implement policies that address the challenges affecting Nigeria’s economy.
