Amid surging inflation and skyrocketing food prices, the Central Bank of Nigeria (CBN) has once again raised the Monetary Policy Rate (MPR), which measures interest rates by 50 basis points, from 26.25% to 26.75%.
This was declared by CBN Governor Olayemi Cardoso following the 296th Monetary Policy Committee (MPC) meeting of the top bank on Tuesday in Abuja.
The asymmetric corridor surrounding the MPR was modified by the MPC from +100 to -300 to +500 to -100 basis points.
Additionally, the MPC kept the deposit money banks’ Cash Reserve Ratio (CRR) at 45%, merchant banks’ CRR at 14%, and the liquidity ratio at 30%.
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Cardoso said the committee was aware of how growing costs affected both individuals and companies, and he reaffirmed the committee’s commitment to taking the required actions to limit inflation.
He stated that although inflation increased in June 2024, prices are anticipated to decline in the near future due to the continued success of monetary policy and further steps taken by the fiscal authority to combat food inflation.
The MPC expressed concern over the ongoing erosion of price stability caused by rising energy and food prices.
Nonetheless, he announced that the MPC will meet again on September 23 and 24.
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