Olayemi Cardoso argued that the multiple hikes in interest rates in the last year have helped to moderate inflation
The Central Bank of Nigeria, CBN, has again raised its Monetary Policy Rate (MPR) by 50 basis points to 27.25 percent, from 26.75 percent, to moderate inflation, which stands at 32.15 percent.
This was disclosed by the CBN Governor, Olayemi Cardoso, after the apex bank’s 297th Monetary Policy Committee (MPC, meeting held on the 23rd and 24th of September in Abuja to review recent economic and financial developments as well as assess its outlook for the year.
The MPC also raised the Cash Reserve Ratio (CRR) by 50 basis points from 45 percent to 50 percent for Deposit Money Banks (DMBs) and from 14 percent to 16 percent for Merchant Banks, just as the committee retained the Liquidity Ratio (LR) at 30 percent and the Asymmetric Corridor at +500/-100 basis points around the MPR.
Cardoso said, “The multiple hikes in interest rates in the last year since he assumed office as CBN boss have helped to moderate inflation. The committee was unanimous in its decision to further tighten policy and thus decided as follows: one: raise the MPR to 27.25 per cent.
“There is no economic model that portends to take people out of poverty when inflation is accelerating at the level we have seen it. There is none. And for that reason, we do not intend to relent in ensuring that we bring it under control,” he said
