The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) hiked the benchmark interest rate by 200 basis points to 24.75 percent from 22.75 percent. This is the second rate hike by the current committee.
The asymmetric corridor is adjusted around the MPR at +100/-300 basis point, cash reserve ratio of deposit money bank is retained at +45 percent, cash reserve ration of Marchant banks is adjusted from 10 percent to 14 percent and the liquidity ratio is retained at 30 percent.
Committee’s consideration is focused on current inflationary pressures and the need to anchor inflation expectations as well as ensuring sustained exchange rate stability so as to restore purchasing power of ordinary Nigerians is restored in the short and medium term.