In a significant move, the Central Bank of Nigeria (CBN) has announced a substantial increase in the monetary policy rate (MPR), raising it by 400 basis points to reach a historic high of 22.75 per cent.
This adjustment marks a notable escalation from the previous MPR level of 18.75 per cent, which had remained unchanged since the last Monetary Policy Committee (MPC) meeting held on July 24th and 25th, 2023.
Additionally, the CBN has opted to raise the Cash Reserve Ratio to 45 per cent, while maintaining the liquidity ratio at 30 per cent. Furthermore, adjustments have been made to the Asymmetric Corridor, which now stands at +200/-700.
These decisions reflect the CBN’s proactive measures aimed at addressing prevailing economic conditions and ensuring stability within the financial landscape.
