ABUJA – Following the 296th Monetary Policy Committee (MPC) meeting held on Tuesday, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso announced key decisions aimed at addressing the country’s economic challenges.
The MPC has adjusted the asymmetric corridor around the Monetary Policy Rate (MPR) from +100/-300 basis points to +500/-100 basis points. Additionally, the committee decided to retain the Cash Reserve Ratio (CRR) at 45% for deposit money banks and 14% for merchant banks, while the Liquidity Ratio remains at 30%.
Governor Cardoso emphasized the committee’s awareness of the impact of rising prices on households and businesses, reaffirming its commitment to implementing measures to curb inflation. Despite an uptick in inflation in June 2024, Cardoso expressed optimism that prices will stabilize in the near term as monetary policies gain traction and additional fiscal measures are taken to address food inflation.
The MPC voiced concerns over persistent food inflation and escalating energy costs, which continue to undermine price stability in the economy.
