BREAKING: CBN Raises Interest Rate by 400bps to 22.75%

By Aduragbemi Omiyale

The Central Bank of Nigeria (CBN) has announced a 400 basis points or 4.00 per cent hike in the Monetary Policy Rate (MPR).

The Governor of the CBN, Mr Yemi Cardoso, while addressing journalists at the end of the two-day Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, said the team agreed to push the benchmark interest rate to 22.75 per cent from the 18.75 per cent it was increased to in July 2023, when the MPC was last held.

Business Post reports that the Cash Reserve Ratio (CRR) was raised by 12.5 per cent to 45.0 per cent from 32.5 per cent, with the liquidity ratio at 30.0 per cent and the Asymmetric Corridor at +100 basis points and -700 basis points around the MPR.

The outcome of this MPC meeting beat analysts’ projections of a rate hike of 100 basis points. The increase in the highest by the committee and it was to mop up excess liquidity in the market.