Nigeria’s hardship piles up as CBN introduce new policy

The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) by 50 basis points, bringing it from 26.75% to 27.25%.

This decision was reached at the 297th Monetary Policy Committee (MPC) meeting held in Abuja. The move signifies continued tightening of monetary policies as inflationary pressures persist.

CBN Governor, Olayemi Cardoso, disclosed that 11 of the 12 committee members present unanimously supported the rate hike.

“The committee was unanimous in the need to further tighten monetary policy,” Cardoso stated during the briefing.

In addition to the interest rate hike, the MPC opted to retain the asymmetric corridor of +500 and -100 basis points around the MPR. The Cash Reserve Ratio (CRR) was also increased from 45% to 50%.

These measures reflect the CBN’s determination to combat inflation and stabilise Nigeria’s economy, with Cardoso emphasising the importance of remaining vigilant in the face of global economic challenges.