CBN Raises Interest Rate To 22.75%

The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) by four hundred basis points to 22.75 per cent from 18.75 per cent.

The apex bank Governor, Yemi Cardoso. announced this after the first Monetary Policy Committee (MPC) meeting for the year in Abuja on Tuesday.

Cardoso also said the MPC also raised the Cash Reserve Ratio (CRR) to forty-five per cent while the liquidity ratio was left unchanged at thirty per cent.

He said the move was in a bit to tame the stubborn inflation that had not responded much to the previous marginal increase.

In 2023, Nigeria’s MPC adopted a distinct approach, steadily increasing the MPR across four consecutive meetings, ultimately reaching a substantial 18.75 percent by the end of the year.

Despite these proactive measures, other significant indicators such as the Cash Reserves Ratio (CRR) and Liquidity Ratio remained static, with the CRR staying at 32.5 per cent and the Liquidity Ratio at 30.0 per cent throughout the period.

Speaking further, the CBN governor added that $400 million was paid on Tuesday to settle some outstanding foreign exchange (FX) commitments.