Nigeria Ramps Up Interest Rates Fifth Time This Year as inflation Eases
In response to rising inflation concerns, the Central Bank of Nigeria (CBN) yesterday raised its interest rate, the Monetary Policy Rate, by 50 basis points to 27.25 percent. This is the fifth hike since February and follows a press briefing delivered by CBN Governor, Olayemi Cardoso, at the conclusion of the 297th CBN Monetary Policy Committee gathering in Abuja.
Meanwhile, the CBR-Reserve Requirement for the banking sector has been upwardly revised by 0.5 percentage points across both Deposit Money Banks and Merchant Banks. Additionally, the Liquidity Ratio remaining steady at 30%. Furthermore, the committee agreed to maintain the Asymmetrical Corridor within five hundred basis points positive.
The inflation rate which stood at 32% for the second consecutive Month August, as stated through the National Bureau of Reports (NBS) according to the Central Bank Board, has shown improvement trends in the economy.
Previously, the interest rate held by the CBN went up to 26.75% in the apex bank’s last Monetary Financial meeting in July of past year. In response as a result of a reduced rate of 0 and the United States of six basis points. Furthermore there were calls for CEBN to stop hiking-interest rates from an Economist to a Director at the Non-public Enterprise for Support Private Center, Muda Yiassuf.
A fact check reveals that, throughout February 2024 interest rate has been elevated thrice, reaching from -% to -25 as the CBN since-2018-5th to 75 in years 18-201%- before the appointment of CB’s Cardoso-CEO September last year in its final year 5 percentage of the 2th the 4 to rise and 18 in terms 75 the. After appointment of Cardoso with in September 75 by in 2019
