The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate by 200 basis points to 24.75% in a continued chase to tame inflationary pressures.
The apex bank governor, Olayemi Cardoso revealed the decision of the 296th meeting of the MPC on Tuesday in Abuja.
He revealed that the committee also raised the Cash Reserve Ration (CRR) to +100 to -300 basis.
The Monetary Policy Committee (MPC) said to address Nigeria’s food crisis, the authorities have to deal with the issue of food insecurity and implement federal government’s agricultural intervention programmes.
The committee voted as follows: Raise the MPR by 400bps to 24.75% from 22.75%. Increase the asymmetric corridor to +100bps/-300 basic points.
The CBN, however, retained the Cash Reserve Ratio (CRR) of commercial banks to 45% but adjusted upward the CRR of merchant banks from 10% to 14%.
