CBN Raises MPR to 22.75%

James Emejo in Abuja

The Central Bank of Nigeria (CBN) Tuesday raised the Monetary Policy Rate (MPR), otherwise known as the benchmark interest rate by 400 basis points to 22.75 per cent from 18.75 per cent.

This is the biggest interest rate hike in recent times in response to the current inflationary pressures. 

The central bank also raised banks’ Cash Reserve Requirement (CRR) to 45 per cent from 32.5 per cent and retained the Liquidity Ratio at 30 per cent.

Briefing at the end of the Monetary Policy Committee (MPC) meeting, CBN Governor, Mr. Olayemi Cardoso, said the aggressive monetary tightening became inevitable in order to rein in inflation.

Details later…