CBN Raises Key Interest Rate to Record 27.5% to Combat Inflation

The Central Bank of Nigeria has raised its key interest rate to a record 27.5% to curb persistent inflation and boost the Naira.

The Monetary Policy Committee (MPC) increased the benchmark rate for a 14th straight meeting by 25 basis points to 27.50% from 27.25%.

This is also the bank’s 298th MPC meeting and the last one of 2024. Other decisions taken at the MPC, include retaining the asymmetric corridor around the MPR at +500/-100, retaining liquidity ratio at 30% and retaining the cash reserve ratio of deposit money banks at 50%.

Governor Cardoso told reporters that the multiple rate hikes embraced by the apex bank has helped moderate inflation and build on the benefits from previous rate hikes.

The committee says it will continue to monitor developments in the economy, and that its next meeting will be held on the 25th and 26th of January 2025.

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