Naira: CBN Reveals Four Major Decisions at MPC Meeting
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| Naira: CBN Reveals Four Major Decisions at MPC Meeting |
Initially, the MPC increased the Monetary Policy Rate, or interest rate, by 150 basis points to 26.25 per cent from the previous 24.75 per cent set in March 2024.
The Central Bank of Nigeria (CBN) announced four significant decisions at the recently concluded Monetary Policy Committee (MPC) Meeting, aimed at stabilizing the Naira.
CBN Governor Olayemi Cardoso presented the decisions to the press following the 295th MPC Meeting in Abuja.
Initially, the MPC increased the Monetary Policy Rate, or interest rate, by 150 basis points to 26.25 per cent from the previous 24.75 per cent set in March 2024.
This move indicates a rise in the cost of borrowing.
The bank's decision targets the escalating inflation, which climbed to 33.69 per cent in April.
Furthermore, the MPC maintained the Cash Reserve Ratio at 45 per cent. The bank stated this action would aid in reinforcing and preserving the solvency of the nation's banking system.
The Committee also preserved a Liquidity Ratio of 30 per cent.
The Asymmetric Corridor, however, was kept steady at +100/-300.
The apex bank believes these stringent measures will contribute to the reduction of inflation.
The National Bureau of Statistics (NBS) reported that Nigeria's inflation rate rose to 33.69 per cent in April, up from 33.20 per cent in March.
Despite the CBN's numerous efforts, the country's foreign exchange market is still witnessing volatility.
On Monday, the Naira was valued at N1468.99 per dollar in the official forex market.
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