The interest rate in Nigeria was hiked by 25 basis points from 27.25 percent in September 2024 to 27.50 percent in November by the Central Bank of Nigeria’s Monetary Policy Committee.
This was revealed at a press briefing on Tuesday following the 298th MPC meeting in Abuja by CBN Governor Olayemi Cardoso.
“The Committee unanimously agreed to raise the monetary policy rate to 27.50 percent, which is 25 basis points higher,” he stated.
In order to combat inflation, which was 33.87 percent in October 2024, Cardoso stated that the country’s Monetary Policy Rate was raised.
Moreover, he said that the Cash Reserve Ratio will remain at 50 basis points, rising from 14 to 16 percent for commercial banks and from 45 to 50 percent for deposit money institutions.
Additionally, according to the CBN governor, the committee maintains the asymmetric corridor at +500/-100 basis points around the MPR and the liquidity ratio at 30%.
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Cardoso said that the committee kept all other decisions about monetary policy.
The economy’s benchmark interest rate is reportedly measured by monetary policy.
Concerns about core inflation, money supply growth, fiscal deficits, and pressures on food prices were highlighted when the committee lifted the MPR by 50 basis points to 27.25 percent at its September meeting.
Despite a decreasing trend in headline inflation at the time of the most recent MPC meeting, energy costs and other structural factors continued to underpin core inflation, which remained high.
