CBN raises benchmark interest rate to 27.5%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has increased Monetary Policy Rate (MPR), which is the benchmark interest rate, by 25 basis points to 27.50% from 27.25%, in a bid to address the rising inflation in the country.

The decision was announced by the Governor of the CBN, Mr. Yemi Cardoso, who also serves as the Chairman of the Monetary Policy Committee (MPC), at the conclusion of the MPC meeting held in Abuja.

Other parameters were retained: Cash Reserve Ratio (50%), Liquidity Ratio (30%), and the asymmetric corridor (+500/-100 basis points). The decision targets persistent core inflation driven by energy costs and excess liquidity.

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