The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on 25th July 2023, resolved to raise the Monetary Policy Rate (MPR) by 25 basis points to 18.75 percent from 18.5 percent in response to Nigeria's rising headline inflation. The CBN also adjusted the asymmetric corridor of the MPR to +100/-300 from +100/-700 around the MPR. All members voted to narrow the asymmetric corridor from +100 -700 basis points to +100 -300 basis points around the MPR. The apex bank also retained the CRR at 22.5 percent; and retained the liquidity ratio at 30 percent.
Addressing journalists at the end of the MPC meeting in Abuja Tuesday evening, the acting CBN governor, Folashodun Shonubi, said the apex bank has also commenced intervention in the Forex market to make up for the shock.
Shobubi also said members agreed unanimously that the previous rate hikes have been effective in moderating the rate of price increases.
