The Central Bank of Nigeria, CBN, at just concluded Monetary Policy Committee Meeting, announced four key decisions amid efforts to rescue the Naira.
CBN Governor Olayemi Cardoso unveiled the decisions while briefing journalists at the end of the 295th MPC Meeting in Abuja.
First, the MPC raised the Monetary Policy Rate, or interest rate, by 150 basis points to 26.25 per cent from the prevailing 24.75 per cent adopted in March 2024.
The implication is that the cost of borrowing has increased.
The bank said the decision was taken to tackle rising inflation, which rose to 33.69 per cent in April.
Secondly, MPC retained its Cash Reserve Ratio at 45 per cent. The bank explained that this would help the country’s banking system build and sustain its solvency position.
Also, the Committee retained a Liquidity Ratio of 30 per cent.
However, the Asymmetric Corridor remain unchanged at +100/-300.
According to the apex bank, the tightening measures would help bring down inflation.
The National Bureau of Statistics, NBS, said Nigeria’s inflation increased to 33.69 per cent in April from 33.20 per cent in March.
Despite various interventions by the CBN, the country’s foreign exchange market continues to experience fluctuations.
The Naira exchanged at N1468.99 per dollar at the official forex market on Monday.
