CBN Hikes Interest Rate to 27.25%, Marking 8.5% Increase Under New Leadership

The Central Bank of Nigeria (CBN) has voted to increase the Monetary Policy Rate (MPR), raising it from 26.75% to 27.25 %.

Speaking to reporters at the press briefing after the committee’s fifth meeting for the year at the CBN headquarters on Tuesday in Abuja, Olayemi Cardoso, CBN’s governor, said the committee members unanimously decided to tighten monetary policy further.

This new rate shows an 8.5% increase in interest rates under the current leadership since it took office over a year ago.

“The committee was unanimous in its decision to further tighten policy and thus decided as follows, one: raise the MPR to 27.25 per cent,” Cardoso said.

“The MPC decided to retain the asymmetric corridor around the MPR at plus 500 to minus 100 basis points. It also raised the Cash Reserve Ratio of deposit Money banks by 500 basis points to 50 per cent from 45 per cent and merchant banks by 200 basis points to 16 per cent from 14 per cent and retained the liquidity ratio at 30 per cent,” he continued.

It should be noted that this new rate is an increase of 50 basis points from 26.75 per cent announced by CBN in July 2024.

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