CBN raises interest rate by 150 basis points to 26.25%

The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) has announced a 150 basis points increase in the benchmark interest rate, raising it from 24.75% to 26.25%.

Following a two-day meeting, the bank’s Monetary Policy Committee (MPC) agreed to increase the Monetary Policy Rate(MPR) for the third straight time to rein in the country’s soaring inflation levels pegged at 33.69% in April 2024.

CBN governor, Yemi Cardoso, made the announcement during the press briefing following the 295th MPC meeting of the bank on Tuesday.

Additionally, the bank has decided to maintain the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBs) at 45%. The Asymmetric corridor around the MPR has been set at +100 and -300 basis points.