The Central Bank of Nigeria (CBN) has once again increased the Monetary Policy Rate (MPR) by 50 basis points, raising it from 26.25% to 26.75% in response to soaring inflation and skyrocketing food prices.
CBN Governor, Olayemi Cardoso, announced this decision following the apex bank’s 296th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday.
The MPC also adjusted the asymmetric corridor around the MPR from +100 to -300 basis points to +500 to -100 basis points.
Additionally, the MPC maintained the Cash Reserve Ratio (CRR) for deposit money banks at 45% and for merchant banks at 14%, and kept the Liquidity Ratio unchanged at 30%.
Cardoso acknowledged the impact of rising prices on households and businesses and affirmed the committee’s commitment to taking necessary measures to control inflation.
Despite the increase in inflation observed in June 2024, Cardoso expects prices to moderate in the near term as monetary policy gains further traction, along with additional measures by the fiscal authorities to address food inflation.
The MPC expressed concern that food inflation and rising energy costs continue to threaten price stability.
According to the latest data from the National Bureau of Statistics (NBS), Nigeria’s inflation rate reached a record high of 34.19% in June.
Food inflation also increased to 40.87% year-on-year in June 2024, up from 40.66% in May 2024 and 15.62% higher than the 25.25% recorded in June 2023.
Details Later…