CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels

Afinju FM — Wed, 22 May 2024 12:00:43 +0000

Following a two-day meeting, the bank’s Monetary Policy Committee ,MPC, agreed to increase the Monetary Policy Rate,MPR, for the third straight time to rein in the country’s soaring inflation levels pegged at 33.69% in April 2024.
The CBN Governor Yemi Cardoso who is also the MPC chairman however, said the Cash Reserve Ratio ,CRR, of Deposit Money Banks ,DMBS, was retained at 45 per cent. The MPC also put the Asymmetric Corridor around the MPR at +100 and –300 basis points. It retained the liquidity ratio at 30 per cent.
The CBN chief who admitted the rising inflation levels in the country said the key focus of the MPC meeting was to achieve price stability by using tools available to rein in inflation.
He said the inflation pressure is being driven largely by food inflation, citing rising costs of transportation, infrastructure challenges, insecurity, and exchange rate issues as some of the factors affecting it.
The announcement comes amid soaring prices of commodities and a rising cost of living.

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CBN Raises Interest Rate To 26.25 % Amid Soaring Inflation Levels