The Monetary Policy Committee of the Central Bank of Nigeria has increased the country’s interest rate by 25 basis points to 27.50 per cent in November from 27.25 per cent in September 2024.
Addressing journalist during a press briefing on Tuesday November 26 after the 298th MPC meeting in Abuja, the CBN Governor Olayemi Cardoso, disclosed that;
“The Committee was unanimous in its agreement to raise the monetary policy rate by 25 basis points to 27.50 per cent”.
Cardoso noted that the decision to raise the country’s MPR is to tackle inflation, which stood at 33.87 per cent in October 2024.
The CBN Boss also announced that the Cash Reserve Ratio was retained at 50 basis points, from 45 per cent to 50 per cent for deposit money banks and from 14 per cent to 16 per cent for merchant banks.
Also, the CBN governor stated that the committee retains the liquidity ratio at 30 per cent and the asymmetric corridor at +500/-100 basis points around the MPR.
Similarly, Cardoso stated that the committee retained all other monetary policy decisions.
Recall that during its September meeting, the committee raised the MPR by 50bps to 27.25 per cent, emphasizing concerns over core inflation, money supply growth, fiscal deficits, and food price pressures.
Although headline inflation was trending downward at the time of the last MPC meeting, core inflation remained elevated, driven by energy costs and other structural factors.
