The Central Bank of Nigeria (CBN) has further raised the benchmark interest rate by 150 basis points to 26.25 percent to reign in inflation that is currently at 33.69 percent.
At the 294th MPC meeting, the benchmark interest rate was raised by 200 basis points from 22.75% to 24.75%.
Again, this decision was made at the 295th Monetary Policy Committee (MPC) meeting held between 20th and 21st May 2024 in Abuja.
The CBN also pegged the Cash Reserve Ratio (CRR) at 45 percent, the Liquidity Ratio at 30 percent, and the Asymmetric Corridor of +100 and -300 basis points around the MPR.
At the post-MPC Press press briefing, the CBN Governor, Dr. Olayemi Cardoso assured that the Nigerian banks are safe and sound.
Our banking system is sound, safe, and fit for purpose he assured.
He reiterated that the recapitalisation currently underway is forge a stronger and more robust banking sector particularly based on the targeted $1 trillion Nigerian economy.
According to the CBN Governor, the apex bank has received feedback from the banks and their response level is healthy.
He also said the CBN is not putting any bank under pressure. “We are strengthening the banking system for the benefit of all” he assured.
…details later.