The Central Bank of Nigeria has increased its Monetary Policy Rate (MPR) from 26.75% to 27.25% in order to help control inflation, which is currently at 32.15%.
Yemi Cardoso stated that this is anticipated to boost confidence, allowing economic participants to make plans for the medium to long term.
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CBN Governor Olayemi Cardoso announced this information while speaking to reporters following the bank's 297th Monetary Policy Committee (MPC) meeting on Tuesday, September 24, 2024.
In his speech, he said;
The committee was unanimous in its decision to further tighten policy and thus decided as follows, one: raise the MPR to 27.25%.
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Cardoso also noted that the MPC increased the Cash Reserve Ratio (CRR) for Deposit Money Banks by 500 basis points, raising it from 45% to 50%.
Here is what he said;
The MPC decided to retain the asymmetric corridor around the MPR at plus 500 to minus 100 basis points.
It also raised the Cash Reserve Ratio of deposit Money banks by 500 basis points to 50% from 45% and merchant banks by 200 basis points to 16% from 14% and retained the liquidity ratio at 30%.
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He further added that the MPC maintained the asymmetric corridor around the MPR at +500/-100 basis points and kept the Liquidity Ratio at 30%.
He said;
The Committee noted the moderation in headline inflation year-on-year in July and August. In addition, the MPC noted the relative stability and convergence in the exchange rate across the various market segments, resulting from the apex bank’s tight monetary policy stance.
As earlier captured above this article by tbc-nigeria, Yemi Cardoso stated that this increase is anticipated to boost confidence, allowing economic participants to make plans for the medium to long term.
Source: tbc-nigeria
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