The Central Bank of Nigeria on Tuesday hiked its key interest rate by 200 basis points, as Africa’s largest economy looks to recover from a historic currency crisis and soaring inflation.
The CBN announced that its main monetary policy rate would rise to 24.75% from 22.75%, in its second consecutive hike after February’s 400 basis point increase.
Governor Olayemi Cardoso told a press conference that policymakers believed they need to continue tightening in order to tame runaway inflation, according to Reuters.
Revealing the decision of the 296th meeting of the MPC on Tuesday in Abuja, CBN Governor, Olayemi Cardoso, said the committee also raised the Cash Reserve Ration (CRR) to +100 to -300 basis.
CBN increased the interest rate by 400 basis points, taking the interest rate benchmark to 22.75 per cent from 18.75 per cent, a major tightening measure to tame Nigerians high inflation currently at 30.70 per cent.
Retain the Cash Reserve Ratio of Deposit Money Banks at 45 per cent and Adjust the CRR of Merchant banks from 10 per cent to 14 per cent.
The CBN retains a liquidity ratio of 13 per cent.
Details later…
