UPDATE: Again, CBN Raises Nigeria’s Interest Rate To 27.25%

UPDATE: Again, CBN Raises Nigeria’s Interest Rate To 27.25%

by Victor Ndubuisi
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The interest rate was increased by 50 basis points to 27.25 percent by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), marking the fifth increase since February 2024.

This was revealed by CBN Governor Olayemi Cardoso on Tuesday during a press conference following the 297th MPC in Abuja.

Additionally, he said that the Cash Reserve Ratio (CRR) for Deposit Money Banks (DMBs) would increase from 14 to 16 percent, and for Merchant Banks, it would increase from 45 to 50 basis points. The committee also decided to keep the Asymmetric Corridor at +500/-100 basis points around the MPR and the Liquidity Ratio (LR) at 30%.

JUST IN: CBN Opposes Lockdown, Retains Interest Rate At 11.5%

The National Bureau of Statistics (NBS) reports that in August, the country’s inflation rate decreased to 32.15 percent, marking a second consecutive month of decline.

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Recall that during its last MPC meeting in July 2024, the apex bank hiked the interest rate to 26.75 percent.

This occurs five days after the US Federal Reserve, for the first time since July 2023, announced a sizable 0.5 percent interest rate drop.

Interest rate hikes should be stopped, according to economist and executive director of the Centre for the Promotion of Private Enterprise Muda Yusuf.

According to Anaedoonline.ng, the CBN has increased interest rates four times since February 2024, from 22.75 percent to 26.75 percent. Prior to Cardoso’s appointment in September of last year, the interest rate in the nation was 18.75 percent.

 

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