The Central Bank of Nigeria, CBN, on Tuesday, announced a 50 basis point increase in the monetary policy rate, MPR, from 26.25 per cent to 26.75 per cent.
CBN Governor, Olayemi Cardoso, made the announcement at the end of the 296th meeting of the Monetary Policy Committee, MPC, in Abuja on Tuesday.
The increase is a desperate attempt to tame the rising inflation rate, which stood at 34.19 per cent as of last week.
The CBN also resolved to retain the cash reserve ratio, CRR, at 45 per cent and the liquidity ratio at 30 per cent.
The MPC noted that while monetary policy has been moderating aggregate demand, rising food and energy costs continue to exert upward pressure on prices.
The Committee expressed concern over the persistence of food inflation, which it attributed to prevailing insecurity in food-producing areas and high transportation costs.
The CBN Governor acknowledged the impact of rising prices on households and businesses, emphasising the Committee’s commitment to price stability.
“Members are, therefore, not oblivious to the urgent benefits of addressing these challenges, as it will offer a sustainable solution to the persistent pressure on food prices,” he stated.
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