CBN raises interest rate to 26.75%
The Monetary Policy Committee(MPC) of the Central Bank of Nigeria(CBN) has raised the benchmark lending rate to 26.75 per cent.
The increase was announced by the Governor of the CBN, Olayemi Cardoso, at the end of the 296th MPC meeting in Abuja on Tuesday.
The MPC had maintained a policy stance to curb inflation since it resumed meeting this year and since then has hiked rate by more than 500 points.
The rate was raised to 26.25 per cent in May.
Cardoso said, “the Committee’s decisions are to raise the MPR by 50 basis points to 26.75 % from 26.25%, while adjusting the asymmetric corridor around the MPR from +100 to -300, to +500 to 100 basis points.
The committee also decided to retain the Cash Reserve Ratio of Deposit Money banks at 45% and Merchant Banks at 14%, and retain Liquidity Ratio at 30%.”
