CBN Raises Tough Benchmark And Policies For Businesses

Businesses and manufacturers are struggling as the CBN raises the benchmark interest rate to 22.75%.

The Monetary Policy Rate (MPR), which was raised by the Central Bank of Nigeria (CBN) to 22.7% by 400 basis points, will result in higher borrowing costs.

This was stated by Central Bank Governor Olayemi Cardoso on Tuesday during the 293rd Monetary Policy Committee (MPC) meeting, which was held at the CBN Headquarters in Abuja.

The top bank is holding its first MPC at this time.

This was stated by Central Bank Governor Olayemi Cardoso on Tuesday during the 293rd Monetary Policy Committee (MPC) meeting, which was held at the CBN Headquarters in Abuja.

Since Cardoso became CBN governor last year, the apex bank has held its first MPC.

Cardoso announced the decision, stating that the committee decided to keep the liquidity ratio at 30%, increase the asymmetric corridor to +100 and 700, and increase the cash reserve ratio from 32.5 to 45 percent.

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Cardoso is looking for monetary solutions to maintain price and exchange rate stability in the face of rising inflation, which is currently at 29.8%, and a declining currency.

Last week, the official exchange rate reached as high as N1,700, while at the Bureau de Change segment of the foreign exchange market, the rate was almost N2,000 per dollar.

“Members were concerned about the persistent rise in inflation and emphasised commitment to reverse the trend,” Cardoso said.