According to Businessday, the Central Bank of Nigeria (CBN) on Tuesday raised its benchmark interest rate, known as the Monetary Policy Rate (MPR) to 22.75 per cent, for the first time in eight months. The CRR was increased to 45 per cent.
According to CBN data, this is the highest MPC rate ever and is aimed at mopping up excess naira liquidity.
Interest rate up to 22.75 per cent
Olayemi Cardoso, governor of the CBN, who chaired the Monetary Policy Committee (MPC) meeting for the first time since he assumed office in September 2023, made the announcement Tuesday.
In 2023, Nigeria’s MPC adopted a distinct approach, steadily increasing the MPR across four consecutive meetings, ultimately reaching a substantial 18.75 per cent by the end of the year. Despite these proactive measures, other significant indicators such as the Cash Reserves Ratio (CRR) and Liquidity Ratio remained static, with the CRR staying at 32.5 per cent and the Liquidity Ratio at 30.0 per cent throughout the period.
