The Olayemi Cardoso-led monetary committee has decided to further tighten policy by raising the MPR by 50 basis point to 27.25 per cent from 26.75 per cent.
Since the beginning of the year, the committee has taken to increasing rate. This aggressive tightening cycle began in February with a 400 basis point hike, followed by additional increases of 200 basis points in March ,150 basis points in May, 50 basis point in June and finally by 50 basis point.
The asymmetric corridor was retained at +500 to -100 basis points. Adjusted around the MPR from +500 to -300 in the 296th MPC meeting.
the Cash Reserve Ratio (CRR) of deposit money banks by 500 basis points to 50 per cent from 45 per cent, and merchant banks by 200 basis points to 16 per cent from 14 per cent. However, the Liquidity Ratio was retained at 30 per cent.
The MPC is the highest policy-making organ of the apex bank. It provides monetary policies and benchmarks, which determine the direction of the financial services sector, and the economy to a large extent.