In a decisive move to address the economic challenges facing Nigeria, the Central Bank of Nigeria’s Monetary Policy Committee (MPC) has increased the Monetary Policy Rate (MPR) by 200 basis points, setting it at 24.75% from the previous 22.75%. The MPR, a critical financial tool, influences the rate at which banks lend to each other on a short-term basis, often overnight.
The announcement was made by the CBN Governor, Mr. Yemi Cardoso, during the reading of a communiqué at the 294th MPC meeting. “This adjustment is a strategic response to the prevailing economic conditions and is aimed at stabilising our financial ecosystem,” explained Cardoso.
In addition to the MPR hike, the MPC also revised the Asymmetric Corridor to +100/-300 basis points around the MPR, while maintaining the Cash Reserve Ratio at 45%. “These measures are part of a broader strategy to ensure economic stability and growth,” Cardoso stated.
