JUST IN: CBN Raises Interest Rate to 26.75% Amidst Inflationary Pressures

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has again increased the benchmark interest rate by 50 basis points from 26.25 per cent to 26.75 per cent.

This was disclosed by the Governor of the CBN, Olayemi Cardoso, who doubles as the Chairman of the MPC at the end of the 296th MPC meeting which was held on Monday and Tuesday in Abuja.

Cardoso disclosed that the MPC raised the MPR by 50 basis points to 26.75 per cent and raised the asymmetric corridor around the MPR from +100/-300 basis points to +500/-100.

The MPC however retained the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBs) at 45 per cent, and held the liquidity ratio at 30 per cent.

Revealing the considerations of the MPC, Cardoso said, “The key focus of the MPC at this meeting remained to achieve price stability by effectively using tools available to the monetary authority to rein in inflation.

Recall that last week, Nigeria’s inflation rate rose to 34.19 percent amid the surge in food prices.