CBN raises rate to record 22.75% after Cardoso’s first MPC meeting

The Monetary Policy Committee of the Central Bank of Nigeria (CBN), at its first meeting presided over by Olayemi Cardoso, has raised the monetary policy rate (MPR) by 400 basis points to a record 22.75%.

The apex bank also raised the CRR to 45%.

This was announced by Cardoso, governor of the CBN, who chaired the Monetary Policy Committee (MPC) meeting for the first time since he assumed office in September 2023.

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

According to him, the committee raised the MPR by 400 basis points to 22.75 percent, and adjusted the asymmetric corridor at +100 and -700 basis points from +100 basis points and -300 basis points around the MPR.

He said the committee also increased the cash reserve ratio (CRR) from 32.5 percent to 45 percent, while retaining the liquidity rate at 30 percent.

On inflation, he said the rate of change in prices of goods and services rose to 29.9 percent in January 2024, from 28.92 percent in December 2023

He attributed the hike in inflation to rising costs of energy, high fiscal deficits and insecurity.