THE Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), also known as the benchmark interest rate, to 26.25 per cent.

The CBN Governor, Olayemi Cardoso, announced this as the decision taken by the Monetary Policy Committee (MPC) members after its two-day meeting in Abuja on Tuesday, May 21.

He said the committee raised the MPR by 150 basis points from 24.75 per cent to 26. 25 per cent.

He also said the committee retained the cash reserve ratio (CRR) of deposit money banks (DMBS) at 45 per cent and put the asymmetric corridor around the MPR at +100 and –300 basis points.

“The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 295th meeting on the 20th and 21st of May 2024 to review recent economic and financial developments and assess risks to the outlook,” Cardoso said.

The ICIR reports that this is the third straight time the committee has hiked the benchmark interest rate to rein in the country’s soaring inflation.

Nigeria’s inflation surged to 33.69 per cent in April 2024, putting further pressure on the country’s economy and worsening the hardships Nigerians face as the prices of commodities, energy costs and other economic goods further skyrocketed.

In February, the CBN raised the benchmark interest rate by 400 basis points to 22.75 per cent, CRR to 45 per cent, adjusted the asymmetric corridor to +100 to -700 and retained the liquidity ratio at 30 per cent.

In March, it raised the benchmark interest rate by 200 basis points to 24.75 per cent, adjusted the asymmetric corridor to +100 to -300, retained the CRR of DMB at 45 per cent and the liquidity ratio at 30 per cent but adjusted the CRR of merchant banks from 10 to 14 per cent.

The ICIR reported on May 16 that Cardoso, who doubles as the chairman of the MPC, said that the apex bank would continue its orthodox policies to tame inflation.