The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has held its 294th meeting to review recent economic and financial developments as well as assess risks to the outlook.
The meeting held on the 25th and 26th of March 2024 came to a number of monitory policy decisions including;
1. Raise the MPR by 200 basis points to 24.75 per cent from 22.75 per cent.
2. Adjust the asymmetric corridor around the MPR to +100/-300 basis points
3. Retain the Cash Reserve Ratio of Deposit Money Banks at 45.0 per cent.
4. Adjust the Cash Reserve Ratio of Merchant Banks from 10.0 per cent to 14.0
per cent
5. Retain the Liquidity Ratio at 30.0 per cent
Considerations
The considerations of the Committee at this meeting focused on the current inflationary pressures and the need to anchor inflation expectations as well as ensure sustained exchange rate stability.
These considerations underscore the importance of the CBN’s commitment to the price stability mandate and the need to urgently bring inflation under control to ensure that purchasing power of ordinary Nigerians is restored in the short to medium term.
