The Central Bank of Nigeria (CBN), in a bid to combat rising inflation, has implemented a significant increase in the monetary policy rate, also known as the interest rate. The rate has been raised by 200 basis points to 24.75%, up from 22.75%. This decision was announced by CBN Governor, Olayemi Cardoso, during the 294th Meeting of the Monetary Policy Committee press briefing held in Abuja.
The move comes amidst concerns over the country’s soaring inflation rate, which reached 31.70% in February. Governor Cardoso emphasized the importance of this decision in moderating the inflationary pressures faced by Nigeria. The Cash Reserve Ratio has been retained at 45% as part of the bank’s efforts to stabilize the economy.
This marks the second increase in interest rates since Governor Cardoso assumed office in September. The next MPC meeting is scheduled for May 20th and 21st, 2024.