Rising from the July 2024 Monetary Policy Committee (MPC) meeting the Central Bank of Nigeria (CBN) increased the benchmark interest rate by 50 basis points (50pbs) to 26.75 percent from 26.25 percent.
Headline inflation currently stands at 34.19 percent. When the CBN raised the MPR by 150 basis points to 26.25 percent from 24.75 percent in May 2024, Domestic headline inflation rose to 33.69 percent in April 2024.
Again the CBN reiterated that the decision to increase interest was to ensure price stability, fight rising inflation conditions, and help stabilise fluctuating exchange rates across FX markets.
The CBN also adjusted the asymmetric corridor to +500bps/-100bps from +100bps/-300bps at the previous meeting.
The cash reserve ratio for Deposit Money Banks (DMBs) was retained at 45.0%, and kept the liquidity ratio at 30.0%.
The CBN said it is focused on the best policy approach to continue to guide the economy towards achieving an overall macroeconomic balance.
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