News
Higher Interest Rate Looms As CBN Raises MPR Further To 24.75% .
The apex bank took the hawkish stance on Tuesday at the 294th Meeting of the Monetary Policy Committee in Abuja.
In the February MPC meeting, the committee unanimously voted to raise the benchmark interest rate to 22.75 per cent considering surging inflation.
Experts had predicted another interest rate hike after inflation rose to 31.7 per cent in February up from 29.90 percent in January of 2024.
The CBN Governor Olayemi Cardoso, who dumped the unorthodox monetary policy approach of his predecessor, Godwin Emefiele, has been battling a depreciating naira, unstable foreign exchange reserves and inflation.
He said on the latest decision, “The decision of the MPC are as follows, to raise MPR 200 basis points to 24.75 from 22.75 per cent. Adjust the asymmetric corridor along the MPR at +100/300 basis point to -300 basis points. To maintain a cash reserve ratio of DMB at 45 per cent.
“Adjust the cash reserve ratio of merchant banks from 10 per cent to 14 per cent and retain the liquidity ratio at 30 per cent.”
Cardoso said the focus of the consideration was on the rising inflation, the need to anchor inflation expectations and ensure exchange rate stability.
Nigeria’s money supply hit a historic N95.56 trillion in Feb 2024 despite MPC’s tightening stance
Cardoso also said the decisions by the committee was to contain the money supply which has also contributed to inflation.
Police Launch Anti-Money Laundering Units to Tackle Financial Crimes
NSCDC, Correctional Service Strengthen Security to Avert Jailbreaks
FAAN Needs ₦580bn to Fix Airport Runways Nationwide, MD Reveals
₦1.2bn Capital Budget for Information Ministry Inadequate — Reps
Troops Neutralise Eight IPOB/ESN Members, Arrest Five in Anambra
Honour Fallen Heroes with Justice, Equity, Peace — Diri Urges Nigerians
Nasarawa Police Arrest Two with ₦129 Million, $160,000 Counterfeit Notes
Business1 week agoPresidency lists new national ID card, 9 others as top policies to watch out for in 2025
Business1 week ago2025 Budget: Nigeria’s underfunded embassies, consulates get N2.8 billion allocation for electricity charges
Business7 days agoLagos State Governor Sanwo-Olu signs N3.36 trillion 2025 budget into law
Business1 week agoNigerian startups raised over $400 million in 2024 but Kenya leads in Africa—Report
Business6 days agoCourt gives Interior Minister and AGF ultimatum to defend Expatriate Employment Levy
News1 week agoRivers Crisis Unlikely to End This Year — APC Chair
News1 week ago‘They’re ‘Fake News’: Peter Obi Denies Arrest Rumours
News6 days agoBudgIT Highlights Concerns Over 2025 Budget Omissions, Irregularities