CBN Raises Interest Rate To 24.75%
The Central Bank of Nigeria (CBN) has increased the benchmark interest rate to 24.75 percent.
This was revealed in a communique released by the CBN Governor, Yemi Cardoso today (Tuesday) after the meeting of the Monetary Policy Committee (MPC) held in Abuja.
The new interest rate is a jump from the 22.75 percent announced by the MPC about a month ago and the second rate hike by the current committee.
Cardoso announced the retention of the Cash Reserve Ratio (CRR) of deposit money banks at 45 percent. However, the MPC adjusted the CRR of merchant banks from 10 percent to 14 percent.
The committee also retained the liquidity ratio at 30 percent.
He said: “The considerations of the committee at this meeting focused on the current inflationary pressures and the need to anchor inflation expectations as well as ensure sustained exchange stability,”
According to him, the moves are part of efforts to combat the country’s rising inflationary rate which was pegged at 31.70 percent in February.
