The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has again raised the interest rate by 50 basis point from 26.25 percent to 26.75 percent.
The committee also adjusted the symmetric corridor around the MPR from +100 and -300 to +500 and -100.
It however retained the Cash Reserve Ratio of deposit of money banks at 45% and merchant banks at 14%.
The CBN Governor, Ilayemi Cardoso, said the committee remained optimistic that despite the June 2024 headline inflation, prices were expected to moderate in the near term.
He said the committee’s decision was hinged on monetary policy gaining further traction in addition to recent measures by the fiscal authority to address food inflation.
In its consideration, the committee noted the persistence food inflation, which continues to undermine price stability.
It was observed that while monetary policy had been moderating aggregate demand, rising food and energy costs continued to exert upward pressure on price development.