In a move to curb Nigeria’s skyrocketing inflation, the Central Bank of Nigeria (CBN) has raised the nation’s benchmark interest rate by 25 basis points, pushing it to 27.5% in November 2024.
This marks an incremental rise from 27.25% in September 2024, following continued pressures from inflationary trends.
The decision was unanimously approved by the Monetary Policy Committee (MPC) of the CBN, with Governor Olayemi Cardoso leading the announcement during a press briefing in Abuja after the 298th MPC meeting on Tuesday.
“The Committee was unanimous in its agreement to raise the monetary policy rate by 25 basis points to 27.5%,” Cardoso said, emphasizing the urgency of the decision amidst the alarming inflationary pressures.
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October 2024 data revealed that inflation had escalated to 33.87%, exacerbating the financial strain on Nigerians.
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The CBN governor explained that the hike was necessary to address persistent inflation, particularly in core inflation categories such as energy costs, which have been inflating at an unsustainable pace.
Cardoso also highlighted that other key monetary policy measures remained unchanged, including the Cash Reserve Ratio (CRR) which was retained at 50%, up from 45% for deposit money banks. Merchant banks will maintain a CRR of 16%.
Also, the CBN maintained the liquidity ratio at 30% and the asymmetric corridor at +500/-100 basis points around the MPR.
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