CBN’s MPC Hikes Interest Rate Again to 27.5%

The Central Bank of Nigeria’s Monetary Policy Committee increased the interest rate by 25 basis points, from 27.25 percent in September 2024 to 27.50 percent in November.

This was revealed by CBN Governor Olayemi Cardoso at a press conference on Tuesday following the 298th MPC meeting in Abuja.

According to him, “the Committee unanimously agreed to raise the monetary policy rate by 25 basis points to 27.50 percent.”

Cardoso stated that the country’s Monetary Policy Rate was raised in order to combat inflation, which was 33.87 percent in October 2024.
Additionally, he declared that the Cash Reserve Ratio will remain at 50 basis points, with merchant banks’ ratio going from 14 to 16 percent and deposit money banks’ from 45 to 50 percent.
The CBN governor added that the committee maintains the asymmetric corridor at +500/-100 basis points around the MPR and the liquidity ratio at 30%.

Read Also: EFCC apprehends former Kogi governor Yahaya Bello

Cardoso added that all other monetary policy choices were kept by the committee.

According to reports, the economy’s benchmark interest rate is measured by monetary policy.

The committee raised the MPR by 50 basis points to 27.25 percent at its September meeting, citing worries about budget deficits, core inflation, money supply growth, and pressures on food prices.

Core inflation, which was fueled by energy prices and other structural factors, remained high even though headline inflation was heading lower at the time of the most recent MPC meeting.