The Central Bank of Nigeria has increased the Monetary Policy Rate from 15.5 percent to 16.5 percent in other to control inflation and ease pressure on the naira, making it the fourth consecutive increase this year. This was revealed by the CBN governor Godwin Emefiele at the end of the Monetary Policy Committee Meeting held in the nation’s capital on 22nd November 2022. Mr. Emefiele said the decision to raise the rate was a unanimous one as all 11 members of the MPC voted in favor of an increase.
He said the decision was made tame inflationary pressure which was expected to rise due to end-of-year spending as well as election-related spending.
More so, Emefiele disclosed that the committee also retained the Cash Reserve Ratio (CRP) at 32.5 percent, also voting to retain the asymmetric corridor at +100 and -700 basis points around the MPR, and the liquidity ratio was retained at 30 percent.
Earlier in the year, the CBN had raised the cash reserve requirement (CRR) to a minimum of 32.5% in a bid to mop-up liquidity. The CPR is the amount of cash commercial Banks are mandated to keep as a reserve at the central bank.