The Central Bank of Nigeria (CBN), for the fifth time this year raised interest rates this year to 27.25%.
The decision was made during the Monetary Policy Committee (MPC) meeting chaired by CBN Governor, Yemi Cardoso who argued that it was part of the bank’s effort to combat rising inflation and stabilise the economy.
Recall that in July 2024, the CBN raised its Monetary Policy Rate (MPR) by 800 basis points to 26.75 per cent, up from 13 per cent in May 2022.
In addition to the MPR hike, the MPC also voted to raise the Cash Reserve Ratio (CRR) for Deposit Money Banks (DMBs) from 45% to 50%, and from 14% to 16% for Merchant Banks.
The bank said these moves are aimed at tightening liquidity in the financial system and stabilizing the economy.
