CBN Hikes Interest Rate by 50bps to 26.75%
The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) has increased benchmark interest rate by 50 basis points (50pbs) to 26.75% at its July meeting.
The decision to increase interest was to ensure price stability, and anchor Nigeria’s rising inflation conditions to help stabilise fluctuating exchange rates across FX markets.
The members of the apex bank committee voted to uplift the monetary policy rate from 26.25% and adjusted the asymmetric corridor to +500bps/-100bps from +100bps/-300bps at the previous meeting.
In a unanimous decision, the CBN committee retained cash reserve ratio for Deposit Money Banks (DMBs) at 45.0%, and keep the metric for Merchant Banks at 14.0%. The committee also retain liquidity ratio at 30.0% # CBN Hikes Interest Rate by 50bps to 26.75%Banking Index Slumps during Intraday Trading on NGX
