The Central Bank of Nigeria, CBN, has raised the monetary policy rate (MPR) by 400 basis points to a record 22.75%.
The announcement was made by CBN governor Yemi Cardoso, who presided over the Monetary Policy Committee (MPC) meeting for the first time since taking office in September 2023.
Recall that in 2023, Nigeria’s MPC implemented a strategy of gradually increasing the MPR over four consecutive meetings. This culminated in a significant rate of 18.75% by the end of the year.
Other important indices, such the Cash Reserves Ratio (CRR) and Liquidity Ratio, stayed constant throughout the time despite these aggressive efforts, with the CRR remaining at 32.5 percent and the Liquidity Ratio at 30.0 percent.
