The Central Bank of Nigeria (CBN) has announced an increase in the Monetary Policy Rate (MPR), raising it from 27.25% in September to 27.5% in November 2024. This decision, made by the Monetary Policy Committee (MPC), aims to address rising inflation and stabilize the country’s economy.
CBN Governor Olayemi Cardoso revealed the development during a press briefing in Abuja on Tuesday, following the 298th MPC meeting. “The Committee was unanimous in its agreement to raise the monetary policy rate by 25 basis points to 27.50 per cent,” he said.
The move comes in response to persistent inflationary pressures, with inflation reaching 33.87% in October 2024. Cardoso explained that the adjustment in interest rates is part of broader efforts to curb inflation and ensure economic stability.
Additionally, the Cash Reserve Ratio (CRR) has been maintained at 50 basis points, reflecting a rise from 45% to 50% for deposit money banks and from 14% to 16% for merchant banks. The liquidity ratio remains unchanged at 30%, as does the asymmetric corridor at +500/-100 basis points around the MPR.
While the decision marks a continuation of tight monetary policies, it reflects the CBN’s commitment to balancing inflation control with economic growth. At its previous meeting in September, the MPC raised the MPR by 50 basis points, citing concerns about core inflation, money supply growth, and rising food prices. Although headline inflation showed signs of slowing at that time, core inflation remained elevated, largely driven by high energy costs and other structural challenges.
