Breaking: CBN Ups Interest Rate to 27.25%

The Central Bank of Nigeria (CBN), has announced its decision to increase the monetary policy rate (MPR) to 27.25%.

This much was disclosed by the CBN Governor, Olayemi Cardoso, on Tuesday.

This resolution was reached at a monetary policy committee (MPC) meeting.

The committee unanimously agreed to tighten policy in the country.

While the former interest rate stood at 26.75%, it has now been raised by 50 basis points to 27.25%.

The Apex bank agreed on retaining the asymmetric corridor around the MPR at +500 to -100 basis points.

Cash reserve ratio for deposit money banks has now been raised by 500 basis points, from 45% to 50%.

The ratio for merchant banks also saw an increase by 200 basis points, from 14% to 16%.

The liquidity ratio, however, remains at the original 13%.