JUST IN: CBN raises interest rate to 27.50%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has increased the country’s interest rate by 25 basis points, raising the Monetary Policy Rate (MPR) to 27.50% in November from 27.25% in September 2024

CBN Governor Olayemi Cardoso announced the decision during a press briefing on Tuesday following the 298th MPC meeting in Abuja.

“The Committee unanimously agreed to raise the monetary policy rate by 25 basis points to 27.50%,” Cardoso stated, explaining that the move aims to curb inflation, which stood at 33.87% in October 2024.

Cardoso also revealed that the Cash Reserve Ratio (CRR) for deposit money banks was increased from 45% to 50%, while that for merchant banks rose from 14% to 16%. Meanwhile, the liquidity ratio remains at 30%, and the asymmetric corridor around the MPR is maintained at +500/-100 basis points.

The Governor noted that all other monetary policy parameters were left unchanged.

At its September meeting, the MPC had raised the MPR by 50 basis points to 27.25%, citing concerns over core inflation, fiscal deficits, and food price pressures. While headline inflation showed signs of easing at the time, core inflation remained elevated due to energy costs and structural challenges.

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