Monday, February 17, 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

NIGERIA CUSTOMS SERVICE, NPA COLLABORATE TO BOOST PORT EFFICIENCY.

The Comptroller-General of Customs Adewale Adeniyi, has emphasised the importance of collaboration between the Nigeria Customs Service  and the Nigerian Ports Authority  in enhancing...

BREAKING: CBN ELIMINATE THREE FREE MONTH WITHDRAWAL FROM ATM.

Central Bank of Nigeria has eliminated the three free monthly withdrawals previously allowed for customers using other banks’ ATMs. In a circular released by the...

NIGERIA CUSTOMS SERVICES  SUSPENDS IMPLEMENTATION OF 4% FOB CHARGE.

 The Nigeria Customs Service has  announced the suspension of the implementation of 4% Free-on-Board (FOB) value on imports as provided in Section 18(1)(a) of the...

Most Popular

KOMOLAFE HIGHLIGHTS ENERGY SECTOR REFORMS AT RENEWED HOPE GLOBAL TOWN HALL CONFERENCE.

The Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe has emphasised the need for a paradigm shift to...

NIGERIA CUSTOMS SERVICE, NPA COLLABORATE TO BOOST PORT EFFICIENCY.

The Comptroller-General of Customs Adewale Adeniyi, has emphasised the importance of collaboration between the Nigeria Customs Service  and the Nigerian Ports Authority  in enhancing...

CBN ASSURES PUBLIC OF KEYSTONE BANK’S STABILITY FOLLOWING FORFEITURE ORDER BY COURT.

Following the court order that the shares of Keystone Bank Limited previously held by the shareholders be forfeited to the Federal Government of Nigeria,...

LOKOPOBIRI URGES OIL & GAS FIRMS TO HARNESS THE OPPORTUNITIES THE $5BN AFRICAN ENERGY BANK.

The Minister of State for Petroleum  Senator Heineken Lokpobiri, has urged stakeholders in the oil and gas industry to harness the opportunities the $5bn...

Recent Comments