CBN pushes up interest rate to 26.25 % amidst rising inflation

The Central Bank of Nigeria (CBN) has raised the interest rate to 26.2 percent.

The CBN governor, Yemi Cardoso, announced this at the end of the two-day meeting of the bank’s Monetary Policy Committee (MPC) on Tuesday in Abuja.

The new interest rate was 150 basis points higher than the 24.75 percent set by the CBN in April.

The CBN governor said the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBS) was retained at 45 percent.

The MPC also put the Asymmetric Corridor around the MPR at +100 and –300 basis points while the CBN retained the liquidity ratio at 30 percent.

READ ALSO: Nigeria’s inflation rate up 0.49% to 33.69% in April 2024

The development means the apex bank has raised the interest rate third for the third month to check the country’s inflation.

The country’s inflation was pegged at 33.6 percent in April.

Cardoso said: “The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 295th meeting on the 20th and 21st of May 2024 to review recent economic and financial developments and assess risks to the outlook.

“The committee’s decisions are as follows: 1. Raise the MPR by 150 basis points to 26. 25 percent from 24.75 percent.”

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