The Central Bank of Nigeria (CBN) has raised its benchmark interest rate by 150 basis points to 26.25%, up from 24.75%, in a bid to curb the country’s spiraling inflation. This decision was announced by CBN Governor, Yemi Cardoso, following the 295th Monetary Policy Committee (MPC) meeting.
The key highlights of the decision include:
– A 150-basis-point hike in the benchmark interest rate to 26.25%
– Retention of the Cash Reserve Ratio (CRR) at 45% for Deposit Money Banks (DMBs)
– Maintenance of the Asymmetric corridor around the Monetary Policy Rate (MPR) at +100 and -300 basis points
This move aims to tackle the rising inflation, which hit 33.69% in April, and stabilize the naira. The CBN continues to tighten monetary instruments to control prices and ensure economic stability.