HomeBUSINESSBreaking:CBN Jacks Up Interest Rate to 26.25% Amid Rising Inflation

Breaking:CBN Jacks Up Interest Rate to 26.25% Amid Rising Inflation

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By Fasuyi Tolulope

The Central Bank of Nigeria (CBN) has increased the interest rate by 150 basis points, moving it from 24.75 percent to 26.25 percent. This decision was reached after a two-day meeting of the bank’s Monetary Policy Committee (MPC).
The MPC, chaired by CBN Governor Yemi Cardoso, decided to raise the Monetary Policy Rate (MPR) for the third consecutive time in response to the country’s escalating inflation levels, which stood at 33.69 percent in April 2024. The committee’s decision is part of a broader effort to control inflation and stabilize the economy.
Governor Cardoso also announced that the Cash Reserve Ratio (CRR) for Deposit Money Banks (DMBs) would remain at 45 percent. Additionally, the Asymmetric Corridor around the MPR was set at +100 and -300 basis points.
This significant adjustment in the interest rate is aimed at curbing the inflationary pressures that have been mounting in recent months. By tightening the monetary policy, the CBN aims to manage the liquidity in the economy and mitigate the effects of rising consumer prices.
The MPC’s decision highlights the CBN’s commitment to maintaining economic stability and protecting the purchasing power of Nigerians amidst challenging economic conditions. Further details on the implications of this policy shift are expected to follow.

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