The Central Bank of Nigeria (CBN) has announced a 50 basis points increase in the Monetary Policy Rate (MPR), raising it from 26.25% to 26.75%.
The decision was revealed by CBN Governor Mr. Olayemi Cardoso during a press conference in Abuja, following the latest Monetary Policy Committee meeting.
In his address, Cardoso stated, “The adjustment in the MPR aims to address the persistent inflationary pressures affecting our economy. By increasing the rate, we hope to curtail inflation and stabilize the financial system.”
Alongside the MPR increase, the CBN has introduced a new Asymmetric Corridor of +500/-100 around the MPR and maintained the Cash Reserve Ratio at 45% for Deposit Money Banks and 14% for Merchant Banks. The Liquidity Ratio remains unchanged at 30%.
Cardoso also reported that the CBN’s policy measures are showing positive results, with capital importation reaching $5.92 billion by the end of June, up from $1.77 billion in the same period last year. He emphasized, “The significant rise in capital importation reflects growing investor confidence and the effectiveness of our monetary policy.”
Despite these gains, Cardoso expressed concern over high inflation rates and the ongoing insecurity in food-producing regions, noting, “Inflation remains a critical issue, and we are closely monitoring the situation in food-producing zones. Urgent action is needed to address these challenges to ensure food security and economic stability,” He stated.
