Central Bank of Nigeria Raises Benchmark Interest Rate to 27.25%

The Central Bank of Nigeria’s Monetary Policy Committee has increased the monetary policy rate (MPR) to 27.25%, a 50 basis point hike from 26.75%. This decision aims to further tighten monetary policy and maintain economic stability.

Governor Olayemi Cardoso announced the unanimous decision after the committee’s fifth meeting. The new rate represents an 8.5% increase under the current leadership.

Other key adjustments include:

– Asymmetric corridor around MPR retained at +500 to -100 basis points

– Cash Reserve Ratio raised to 50% for deposit money banks and 16% for merchant banks

– Liquidity ratio remains at 30%

Contrary to expectations of a rate cut or maintenance, the CBN’s move demonstrates its commitment to addressing economic challenges.