Sunday, July 20, 2025
Home Business CBN RAISES BENCHMARK MPR BY 200 BASIS POINTS TO 24.75%.

CBN RAISES BENCHMARK MPR BY 200 BASIS POINTS TO 24.75%.

 The CBN’s Monetary Policy Committee (MPC) has increased the benchmark interest rate by 200 basis points from 22.75% to 24.75%.
This was disclosed by the Governor of the CBN who doubles as the Chairman of the MPC  while addressing the journalist at the end of the 294th MPC meeting held in Abuja.
Furthermore, the `apex bank retained the Cash Reserve Ratio (CRR) at 45%- unchanged from its last meeting but increased the CRR of merchant banks from 10% to 14% while retaining the liquidity ratio at 30%
The present Monetary Policy Rate (MPR) of 24.75% is unusually high, reflecting the bank’s strong commitment to tackling inflation and exchange rate fluctuations.
While this 200-basis points hike is steep, it still doesn’t surpass the substantial 400 basis points rise implemented by the bank in February.
He said that the Cash Reserve Ratio (CRR) of commercial banks was retained at 45 percent, while the CRR for merchant banks was increased to 14 percent from 10 per cent.    But the   Liquidity Ratio   of banks was left at 30 percent.
Cardoso explained that members of the MPC were faced with continuing with the tightening cycle or a hold to see further impact of last month’s MPR   hike but at the end, after reviewing the balance of risks, it was decided that a further tightening was the way to go.
The  CBN Governor  explained that,  the impact of the decisions taken during the February Monetary Policy Committee (MPC) meeting on the country’s economy, focusing on inflation and the exchange rate.
Speaking on the foreign exchange The Apex bank boss insisted that the backlog of all valid FX transactions had been cleared, adding that security agencies is investigating infractions discovered by the audit firm.
Speaking On Binance, the governor reels out  that CBN has collaborated with security and other agencies of government in handling the case. Adding that,   it is the responsibility of security and exchange commission to regulate crypto currency.
However the next meeting of the Monetary Policy Committee (MPC) by the apex bank is scheduled for May 2024.
RELATED ARTICLES

JOB CREATION: SMEDAN CHAMPIONS GROW NIGERIA INITIATIVE.

The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, has commended the “GROW Nigerian” strategy which aims to boost the growth of Micro,...

CBN CLARIFIES NRBVN CHARGES FOR NIGERIANS IN DIASPORA, REAFFIRMS COMMITMENT TO FINANCIAL INCLUSION.

The Central Bank of Nigeria (CBN) has clarified recent speculations regarding charges related to the newly launched Non-Resident Bank Verification Number (NRBVN) platform, affirming...

NO BREACH OF CIVIL SERVICE RULES IN FORTHCOMING NEPC PROMOTION EXAMS – NEPC

  Nigeria Export Promotion Council (NEPC) has refutes the Sahara Reporters report  regarding the forthcoming promotion examinations at the Nigeria Export Promotion Council (NEPC). In the...

Most Popular

TRAGEDY AVERTED AS OGUN GOVERNOR RESCUES TUNISIAN ATHLETES IN CRASH.

  It was a close call for members of the Tunisian delegation attending the ongoing CAA U18 and U20 African Athletics Championship in Abeokuta, as...

NMDPRA, S&P GLOBAL TO HOST INAUGURAL CONFERENCE ON WEST AFRICAN REFINED FUEL MARKET .

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in partnership with S&P Global Commodity Insights, has announce the inaugural West African Refined Fuel...

KALU URGES NIGERIANS TO DEMAND TRANSPARENCY AS CONSTITUTION REVIEW HITS SOUTHEAST.

  Deputy Speaker of the House of Representatives, Hon. Benjamin Kalu, has called on Nigerians to actively engage in the ongoing constitution review process and...

RECOGNITION FOR EXCELLENCE: NCS SPOKESPERSON MAKES 2025 PR POWER LIST.

The Nigeria Customs Service (NCS) has again been spotlighted for excellence in public service and strategic communication. The National Public Relations Officer, Assistant Comptroller...

Recent Comments