Again, CBN Jerks up Interest Rate to 24.75%

CBN Headquarters

Again, CBN Jerks up Interest Rate to 24.75%

The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate, MPR, it’s benchmark interest rate to 24.75% representing 200 basis points increase from 22.75% in February.

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The CBN Governor, Mr. Olayemi Cardoso, disclosed this at the end of the Monetary Policy Committee, MPC, the meeting in Abuja.

The CBN however retained the Cash Reserve Ratio, CRR of commercial banks to 45% but adjusted upward the CRR of merchant banks from 10% to 14%.

The apex Bank also retained the liquidity ratio of banks at 30%.

The CBN also changed the asymmetric corridor from +100/-700 to +100/-300 around the MPR.

Details later.