The Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) has announced an increase in the Monetary Policy Rate (MPR) by four hundred basis points, raising it to 22.75% from the previous 18.75%, News About Nigeria reports.
This decision was reached during the first MPC meeting for the year, as revealed by CBN Governor Yemi Cardoso in Abuja on Tuesday.
Cardoso stated, “All 12 members of the committee decided to further tighten monetary policy by raising the MPR by 400 basis points to 22.75 percent from 18.75 percent. Adjust the asymmetric corridor around the MPR to +100 to -700 from plus 100 to -300 basis points.”
The MPR had remained at 18.75% since the last MPC meeting held between July 24th and 25th, 2023.
With the country grappling with a 29.90% inflation rate, the increased MPR is part of the CBN’s strategy to address inflationary concerns.
Governor Cardoso also disclosed that the Cash Reserve Ratio (CRR) has been raised to 45% while the liquidity ratio remains unchanged at 30%.
Responding to questions about the economic challenges facing the country, Cardoso said that he and his team are not responsible for Nigeria’s current economic difficulties.
He stated, “I laugh at that question, but it’s not a laughing matter, and I think it is very important for Nigerians to understand that the Central Bank Governor — I and my team — are not responsible for the woes that we have today; we are part of the solution.”
Cardoso acknowledged the crisis of confidence in the country’s economy and expressed determination to implement measures that would improve the situation.
He said that efforts to restore confidence are ongoing and emphasised the importance of confidence in business for sustainable economic progress.
