CBN hikes interest rate to 22.75%

The Central Bank of Nigeria, CBN, has raised the monetary policy rate (MPR) to 22.75 percent.

This represents 400 basis points increase from the 18.75 percent benchmark it has been since September 2023

The announcement was made by CBN governor Yemi Cardoso, at the end of the first Monetary Policy Committee (MPC) meeting under his leadership of the apex bank since September 2023.

Cardoso said that the Cash Reserves Ratio (CRR) and Liquidity Ratio, stayed constant throughout the time despite these aggressive efforts, with the CRR remaining at 32.5 percent and the Liquidity Ratio at 30.0 percent

Analysts had predicted a significant increase in MPR to address the high inflationary rate that hit 29.9 percent in January 2024.

Paul

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