The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has announced a significant increase in the benchmark interest rate to a record 22.75%. 

The decision was disclosed by the CBN Governor, Olayemi Cardoso, during the reading of the communiqué after the first MPC meeting of the year in Abuja.

Cardoso highlighted the committee’s unanimous decision to raise the Monetary Policy Rate (MPR) by 400 basis points, from 18.75% to 22.75%. 

This move marks a significant shift from the previous MPC meeting in July 2023 when the monetary policy rate was raised by 25 basis points to 18.75%

Additionally, the asymmetric corridor around the MPR was adjusted to +100 to -700 basis points, up from the previous range of plus 100 to -300 basis points.

The committee also increased the cash reserve ratio from 32.5% to 45%, while retaining the liquidity ratio at 30%.

The decision to tighten monetary policy comes amid efforts to address economic challenges and stabilize the financial system. 

The MPC aims to curb inflationary pressures and manage exchange rate dynamics through these measures.