The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has unanimously decided to further increase the country’s monetary policy interest rate to 27.50%, up from 27.25%.
This move is part of the central bank’s ongoing efforts to tackle Nigeria’s surging inflation, which reached 33.88% in October 2024.
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CBN Governor Olayemi Cardoso, who read the communique from the 298th MPC meeting in Abuja on Tuesday, stated that the committee also agreed to maintain the asymmetric corridor at +500 to – 100 basis points. The decision to raise the rate is aimed at stabilizing the economy amid the rising inflationary pressure.
Cardoso also reported a positive shift in the country’s foreign reserves, which rose to $40.88 billion as of November 21, 2024, from $40.06 billion at the end of October. The MPC further maintained the Cash Reserve Ratio for deposit money banks at 15% and kept the liquidity ratio unchanged at 30%.
This latest adjustment marks the fifth consecutive tightening since Cardoso assumed office as the CBN governor and chairman of the MPC. In September 2024, the MPC raised the interest rate to 27.25% from 26.75%, following a 50 basis point hike.
