The Central Bank of Nigeria (CBN) has again hiked the Monetary Policy Rate (MPR), which measures interest rates by 50 basis points, from 26.25% to 26.75% amid soaring inflation and skyrocketing food prices.
This marks the fourth rate hike in 2024, following increases of 150, 200, and 400 basis points in previous months.
CBN Governor Olayemi Cardoso announced the decision after a two-day Monetary Policy Committee meeting in Abuja, arguing that this is intended to address Nigeria’s soaring inflation, which hit 34.19% in June.
Other key changes include:
– Adjusted asymmetric corridor around MPR
– Retained Cash Reserve Ratio at 45% for commercial banks
– Adjusted CRR for merchant banks to 14%
– Retained liquidity ratio at 30%
Cardoso emphasized the bank’s commitment to price stability and expressed optimism about moderating inflation in the near term.
He cited persistent food inflation and insecurity in food-producing areas as major concerns.
Experts have warned against further hike of the rate, arguing it could have ripple effects on businesses.
