…All other parameters were raised except for liquidity rate which it retained at 30.0%.
…The asymmetric corridor is hiked +100bps/-700bps (Previously: +100bps/-300bps) while the CRR is increase to 45.0% (Previously: 32.5%).
TUE, FEB 27 2024-theGBJournal| The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) on Tuesday delivered a significant increase in the monetary policy rate by 400bps to 22.75%.
All other parameters were raised except for liquidity rate which it retained at 30.0%.
The asymmetric corridor is hiked to +100bps/-700bps (Previously: +100bps/-300bps) while the CRR is increase to 45.0% (Previously: 32.5%).
This is the first MPC meeting since Yemi Cardoso became the the CBN Governor. The last meeting was held back in July 2023.
The increase in the policy rate is in contrast to the prevailing global trend, where many central banks are scaling back on rate hikes and contemplating reductions.
As expected, the MPC’s decision is primarily influenced by the soaring inflation, which rose to a multi-decade high of 29.90%, and the depreciation of the local currency.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
