A benchmark interest rate has been raised by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) by 400 basis points from 18.5 per cent to 22.5 per cent.
Yemi Cardoso, the CBN governor, while disclosing the decision of the meeting, the first since his announcement as the apex bank governor, said the move was in a bit to tame the stubborn inflation that had not responded much to the previous marginal increase.
The CBN governor said the committee raised the MPR by 400 basis points to 22.75 per cent and adjusted the asymmetric corridor at +100 and -700 basis points from +100 basis points and -300 basis points around the MPR while adding that the committee also increased the cash reserve ratio (CRR) from 32.5 per cent to 45 per cent while retaining the liquidity rate at 30 per cent.
Commenting on inflation, Cardoso said the rate of change in prices of goods and services rose to 29.9 per cent in January 2024 from 28.92 per cent in December 2023 while attributing the hike in inflation to rising energy costs, high fiscal deficits and insecurity.