The Central Bank of Nigeria (CBN) has increased the country’s benchmark interest rate by 25 basis points, bringing it to 27.50% in November 2024, up from 27.25% in September. The decision was made during the 298th meeting of the Monetary Policy Committee (MPC) in Abuja, with CBN Governor Olayemi Cardoso announcing the change at a press briefing.
Cardoso stated that the unanimous decision to raise the Monetary Policy Rate (MPR) is aimed at combating the persistent inflation, which stood at 33.87% in October 2024.
In addition, the CBN Governor confirmed that the Cash Reserve Ratio (CRR) would remain unchanged at 50% for deposit money banks (up from 45%) and 16% for merchant banks (up from 14%). The liquidity ratio was also maintained at 30%, as was the asymmetric corridor at +500/-100 basis points around the MPR.
Other monetary policy measures and decisions were left unchanged. The move follows concerns over rising inflationary pressures, particularly core inflation driven by energy prices, fiscal deficits, and food price inflation.
