By Isaac Akerele
The Central Bank of Nigeria’s Monetary Policy Committee (MPC) has taken a decisive step by increasing the Monetary Policy Rate (MPR) to 22.75%, a significant adjustment up from the previous 18.75%.
This strategic move was revealed by CBN Governor, Mr. Yemi Cardoso on Tuesday, following the first high-stakes MPC meeting of the year held in Abuja.
In addition to the MPR hike, the MPC also raised the Cash Reserve Ratio (CRR) to 45%, signaling a tightening of monetary policy measures, while maintaining the liquidity ratio at 30%.
These policy adjustments are aimed at tackling prevailing economic challenges and fortifying the financial stability of the country.
The MPC’s deliberations carry substantial weight in shaping Nigeria’s monetary landscape and governing the overall financial ecosystem, inevitably exerting influence on interest rates, lending practices, and the broader spectrum of economic activities.
Governor Cardoso stressed that these policy rate modifications align with the CBN’s strategic agenda to navigate the country’s economic terrain adeptly and foster sustainable growth.
As Nigeria braces for this new regulatory paradigm, Governor Cardoso has equally stressed the need for strict compliance among stakeholders. According to him, the MPC is taking a rigorous approach to ensure that the economy is highly liquid, but the money will only get to genuine players in the economy
