The Central Bank of Nigeria (CBN) has raised the monetary policy rate, known as the interest rate, by 400 basis points to 22.75 per cent from 18.5 per cent.
The CBN Governor, Olayemi Cardoso disclosed this at the 293rd Meeting of the Monetary Policy Committee press briefing in Abuja on Tuesday.
Addressing journalists at the end of the two-day meeting in Abuja, Cardoso said the committee voted to adjust the asymmetric corridor around the MPR to +100 to -700 from plus 100 to -300 basis points and raised the cash reserve ratio from 32.5 percent to 45 percent
He said, “All 12 members of the committee decided to further tighten monetary policy by raising the MPR by 400 basis points to 22.75 per cent from 18.75 per cent. Adjust the asymmetric corridor around the MPR to +100 to -700 from plus 100 to -300 basis points.”
The bank also raised the Cash Reserve Ratio to 45 per cent from 32.5 per cent.
“We expect that this will moderate in the short to medium term. We intend to work closely with other organs of government to take the fiscal side of the inflation, especially regarding insecurity”, he said.
He added that the bank will continue to make the market more liquid, warning that operators who are not willing to abide by regulations will face the consequences.
At the last meeting in July 2023, the MPC, headed by the former acting governor of the apex bank, Folashodun Shonubi, increased the monetary policy rate by 25 basis points to 18.75 per cent, from 18.5 per cent in May last year.