CBN Increases Benchmark Interest Rate To 27.25%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) by 50 basis points, to 27.25 percent from 26.75 percent.

Yemi Cardoso, Governor of the Central Bank of Nigeria, made the announcement on Tuesday in Abuja while reading the communiqué from the MPC’s 297th meeting.

Cardoso also revealed that the committee has decided to increase the Cash Reserved Ratio (CRR) for Deposit Money Banks (DMBs) by 50 basis points, from 45% to 50%, while it is 14% to 16% for commercial banks.

The committee kept the Liquidity Ratio at 30% and set the Assymetric Corridor at +500/-100 basis points around the MPR.