CBN raises benchmark interest rate to 18%
The Central Bank of Nigeria raised its key rate to 18% on Tuesday in an aggressive campaign to contain inflationary pressure in the country.
CBN Governor Godwin Emefiele announced on Tuesday after the apex bank's Monetary Policy Committee (MPC) meeting which started on Monday.
Speaking to reporters at the end of the two-day meeting in Abuja, Emefiele said the committee had voted to keep the corridor asymmetric at +100 and -500 basis points around the MPR.
He also revealed that the MPC had voted to keep the cash reserve ratio (CRR) at 32.5%, as well as the liquidity ratio at 30%.
CRR is the share of a bank's total customer deposits that must be kept with the central bank in the form of cash, while the bank's liquidity ratio is the proportion of deposits and other assets that 'she must hold to meet short-term obligations.
In January, the MPC raised its policy rate from 16.5% to 17.5% in a sustained effort to control inflation and ease pressure on the naira.
ALSO READ: UPDATE: CBN raises benchmark interest rate to 17.5%Amid the uncertainties facing Nigerians due to the scarcity of redesigned Naira notes, the country's inflation rate hit 21.91% in February from 21.82% in January.
According to the Nigeria Bureau of Statistics last week, the inflation rate for February increased by 0.09% from the headline inflation rate for January.
Details later…
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The Central Bank of Nigeria raised its key rate to 18% on Tuesday in an aggressive campaign to contain inflationary pressure in the country.
CBN Governor Godwin Emefiele announced on Tuesday after the apex bank's Monetary Policy Committee (MPC) meeting which started on Monday.
Speaking to reporters at the end of the two-day meeting in Abuja, Emefiele said the committee had voted to keep the corridor asymmetric at +100 and -500 basis points around the MPR.
He also revealed that the MPC had voted to keep the cash reserve ratio (CRR) at 32.5%, as well as the liquidity ratio at 30%.
CRR is the share of a bank's total customer deposits that must be kept with the central bank in the form of cash, while the bank's liquidity ratio is the proportion of deposits and other assets that 'she must hold to meet short-term obligations.
In January, the MPC raised its policy rate from 16.5% to 17.5% in a sustained effort to control inflation and ease pressure on the naira.
ALSO READ: UPDATE: CBN raises benchmark interest rate to 17.5%Amid the uncertainties facing Nigerians due to the scarcity of redesigned Naira notes, the country's inflation rate hit 21.91% in February from 21.82% in January.
According to the Nigeria Bureau of Statistics last week, the inflation rate for February increased by 0.09% from the headline inflation rate for January.
Details later…
Support the integrity and credibility journalism of PREMIUM TIMES Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government. For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour. By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.Donate
[embedded content]TEXT ANNOUNCEMENT: Call Willie - +2348098788999
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