By Abiola Olawale
The Central Bank of Nigeria(CBN) has again announced an increment of interest rates by 50 basis points to 27.25%.
This was announced by the Monetary Policy Committee (MPC) on Tuesday.
The Governor of the CBN, Mr. Yemi Cardoso, who doubles as the Chairman of the MPC, disclosed this at the end of the MPC meeting held in Abuja.
Cardoso also announced that during the MPC meeting, the apex bank further increased the Cash Reserve Ratio (CRR) of commercial banks by 500 basis points from 45% to 50%, while that of merchant banks was increased by 200 basis points to 16%.
Furthermore, the MPC raised the asymmetric corridor around the MPR to +500 and –100 basis points while the liquidity ratio was retained at 30%.
The Governor of the CBN noted that the decision to further tighten the monetary policy was a unanimous one by members of the Monetary Policy Committee (MPC).
The New Diplomat reports that this is the latest increment under the tenure of Cardoso as the CBN Governor.
The recent 50 basis points hike in MPR will likely result in a cumulative 850 basis points increase in MPR under the management of Cardoso.
