The Central Bank Increases Interest Rate To 27%

Following the 297th Monetary Policy Committee meeting, which took place in Abuja on September 23 and 24.

This meeting was to examine recent financial and economic developments and evaluate the apex bank’s forecast for the year, this was disclosed by CBN Governor Olayemi Cardoso.

Cardoso stated, “The committee unanimously decided to tighten policy even further, and as a result, they decided to raise the MPR to 27.25 percent.”

Additionally, the MPC increased the Cash Reserve Ratio (CRR) for Deposit Money Banks (DMBs) from 14% to 16% and for Merchant Banks from 45% to 50% by 50 basis points.

The committee decided to keep the Asymmetric Corridor at +500/-100 basis points surrounding the MPR and the Liquidity Ratio (LR) at 30%. Cardoso contended that the several rate increases in the past year since taking over as head of the CBN have contributed to a moderating of inflation.

“When inflation is accelerating to the degree that we have seen it, there is no economic model that promises to lift people out of poverty.” There isn’t any. We will not give up on making sure we get it under control because of this, he stated.

References and Citation

channelstv.com – CBN Raises Interest Rate To 27.25% To ‘Moderate Inflation’

pulse.ng – CBN raises interest rate to 27.25% to moderate inflation

thisdaylive.com – CBN Maintains Monetary Tightening Regime, Raises MPR Further to 27.25%

thecable.ng – CBN increases interest rate to 27.25%