The Central Bank of Nigeria (CBN) has raised the country’s Monetary Policy Rate (MPR) by 25 basis points, moving it to 27.50% from 27.25%. This decision was announced by CBN Governor Olayemi Cardoso during a press briefing on Tuesday following the 298th Monetary Policy Committee (MPC) meeting in Abuja.
Cardoso stated that the decision was unanimous among committee members, aimed at combating Nigeria’s rising inflation, which climbed to 33.87% in October 2024. This marks the sixth interest rate hike since February 2024 as the apex bank intensifies its efforts to stabilize the economy.
Key policy parameters such as the Cash Reserve Ratio (CRR) remain at 50%, while the Liquidity Ratio (LR) stays at 30%. The asymmetric corridor around the MPR is also unchanged at +500/-100 basis points. The CBN emphasized that these measures are essential to curbing inflation and maintaining economic stability.
This move follows a 50-basis point hike in September 2024, reflecting the CBN’s commitment to addressing macroeconomic challenges through tightened monetary policies.
