The Central Bank of Nigeria (CBN) has further tightened monetary policy by increasing the Monetary Policy Rate (MPR) to 27.50 percent from 27.25 percent.
During the final Monetary Policy Committee (MPC) meeting of the year held in Abuja, CBN Governor Yemi Cardoso announced the significant policy adjustment.
The Explainer learned, the decision was reached through a unanimous vote by the committee members, reflecting a coordinated approach to addressing the economic challenges facing the nation.
In addition to raising the MPR by 25 basis points, the CBN maintained several key financial parameters. The Cash Reserve Ratio remains unchanged at 50 percent for Deposit Money Banks and 16 percent for Merchant Banks.
The Liquidity Ratio continues to be set at 30 percent, with an Asymmetric Corridor of +500/-100 basis points around the MPR.
“The Committee was unanimous in its agreement to raise the monetary policy rate by 25 basis points to 27.50 percent,” Cardoso emphasized during the announcement.
The MPR serves as a critical benchmark interest rate, directly influencing lending rates, investment decisions, and overall economic activities across the financial sector.
