The Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR) by 50 basis points, raising it from 26.25% to 26.75%. The announcement was made by CBN Governor Mr. Olayemi Cardoso during a press conference held to reveal the outcomes of the recent Monetary Policy Committee (MPC) meeting in Abuja.
In addition to the rate hike, the CBN has set a new Asymmetric Corridor of +500/-100 around the MPR, compared to the previous +100/-300 range. The Cash Reserve Ratio (CRR) for Deposit Money Banks has been adjusted to 45%, while Merchant Banks will see a CRR of 14%. The Liquidity Ratio remains unchanged at 30%.
Mr. Cardoso noted that the monetary policy measures are showing positive results, with capital importation reaching $5.92 billion by the end of June, a significant increase from $1.77 billion during the same period last year.
Despite these improvements, the MPC expressed concern about high inflation and the impact of insecurity in food-producing regions. The committee has called for immediate actions to address these issues and stabilize the economic situation.
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