In a communiqué issued at the end of the 303rd meeting of the MPC on Tuesday, the CBN Governor, Yemi Cardoso, said that members of the committee also voted to retain the Cash Reserve Ratio, CRR, at 45 per cent for commercial banks and 16 per cent for merchant banks.

Cardoso said that the MPC also retained the 75 per cent CRR on non TSA public sector deposits.

“Liquidity Ratio is also retained at 30 per cent, while Standing Facilities Corridor adjusted to +50 / -450 basis points around the MPR,” he said.

He said that all 12 members of the MPC attended the meeting.

According to him, the committee’s decision is underpinned by the need to sustain the progress made so far towards achieving low and stable inflation.

“The MPC reaffirmed its commitment to a data-driven assessment of developments and outlook to guide future policy decisions.

“It welcomed the continued deceleration in headline inflation year-on-year in October for the seventh consecutive month.

“This favourable development resulted from several factors, including sustained monetary policy tightening, stable exchange rate, increased capital flows, and surplus current account balance” he said.

The CBN governor said that the relative stability in the price of Premium Motor Spirit, PMS, and improved food supply supported the pace of disinflation.

He, however, said that headline inflation remained high at double-digit, requiring sustained efforts towards moderating it further.

“The committee is, therefore, of the view that the steady deceleration in inflation across the three measures, headline, core, and food in October 2025 suggests that the large impact of previous tight policy measures is expected to continue in the near term.

“Maintaining the current stance of policy amid lingering global uncertainties would, thus, allow the effect of previous policy rate hikes to sufficiently transmit to the real economy and further reduce prices.

“Members noted the robust performance of the external sector, evidenced by the surplus current account balance and steady accretion to reserves, which have contributed to stability in the exchange rate and moderation in inflation,” he said.

Source: NAN

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The post CBN retains monetary policy rate at 27% appeared first on Frontpageng.

The MPC took the decision at the end of its 299th meeting and the first for 2025.

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The committee also voted to retain the Cash Reserve Ratio, CRR, at 50 per cent for Deposit Money Banks and 16 per cent for Merchant Banks.

The MPC equally retained the Liquidity Ratio (LR) at 30 per cent and the Asymmetric Corridor at +500/-100 basis points around the MPR.

Source: NAN

The post CBN retains all monetary policy parameters in first MPC meeting for 2025 appeared first on Frontpageng.

The Governor of the CBN and Chairman of the MPC, Yemi Cardoso, announced the raise on Tuesday in Abuja, while presenting a communiqué after the 298th meeting of the committee.

Cardoso, however, announced that the committee also decided to hold all other parameters constant.

The MPC, thus, retained the Cash Reserved Ratio, CRR, at 50 per cent for Deposit Money Banks, DMBs, and 16 per cent for merchant banks, retained the Liquidity Ratio at 30 per cent, and also retained the Assymetric Corridor at +500/-100 basis points around the MPR.

Cardoso said that the decisions were unanimously adopted by all 12 members of the MPC who were present at the meeting.

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Tuesday’s decision is the sixth consecutive tightening of the MPR since Cardoso assumed office as CBN governor.

The first decision under Cardoso was an aggressive hike in the MPR by 400 basis points from 18.75 per cent to 22.75 per cent in February.

In March, the committee, again, increased the MPR by 200 basis points to 24.75 per cent, followed by subsequent hikes to 26.25 in May, 26.75 per cent in July, and 27.25 basis points in September.

Cardoso has, thus, raised the MPR by 875 basis points since he assumed office.

These decisions are aimed at combating inflation, stabilising the economy, and promoting economic growth.

Source: NAN

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Uwaleke, the Director, Institute of Capital Market at the Nasarawa State University, is also the President, Capital Market Academics of Nigeria.

He said this in an interview with the News Agency of Nigeria, NAN, on Sunday in Abuja, against the backdrop of the 298th MPC meeting scheduled to hold on Monday and Tuesday.

According to him, for the first time in many months, both core and food inflation went up last month.

“Ditto for rural and urban, year-on-year and month-on-month inflation, further widening the negative real interest rate.

“The Fx market is still experiencing pressure going by the forward rates of the dollar. FAAC just shared more than N1.4 trillion for October, higher than the figures for previous months,” he said.

He said that there was also the approaching festivities’ period to consider often characterised by higher prices of goods and services.

“Against this backdrop, I will not be surprised if the MPC further jerks up the MPR by at least 50 basis points,” he said.

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He, however, advised the committee to retain its prevailing monetary policy rates to moderate investment costs.

“Nevertheless, all considered, including the rising cost of funds for businesses, I would advise a hold position,” Uwaleke said.

The MPC raised the Monetary Policy Rate, MPR, which is the baseline interest rate, by 50 basis points to 27.25 per cent from 26.75 per cent in its 297th meeting in September.

That decision marked the fifth consecutive hike of the rates since Yemi Cardoso took charge as CBN governor and chairman of the MPC.

“The first decision under Cardoso was an aggressive hike in the MPR by 400 basis points, from 18.75 per cent to 22.75 per cent in February.

In March, the committee, again increased the MPR by 200 basis points to 24 75 per cent, followed by subsequent hikes to 26.25 in May, and 26.75 per cent in July.

Cardoso has thus, increased the MPR by 850 basis points since the commencement of his tenure.

The aim, according to him, is to aggressively address Nigeria’s high inflation, particularly core and food inflation.

Source: NAN

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The Governor of the CBN, Yemi Cardoso, made this known on Tuesday in Abuja, while reading the communiqué from the 297th meeting of the MPC.

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Cardoso announced that the committee also decided to raise the Cash Reserved Ratio, CRR, by 50 basis points from 45 per cent to 50 per cent for Deposit Money Banks, DMBs, while it is 14 per cent to 16 per cent for merchant banks.

The committee, however, retained the Liquidity Ratio at 30 per cent, and also retained the Assymetric Corridor at +500/-100 basis points around the MPR.

Source: NAN

The post CBN further increases interest rate by 50 basis points to 27.25% appeared first on Frontpageng.

Mr Yemi Cardoso, Governor, CBN, who doubles as the chairman of the MPC, made this known while presenting the communique from the 296th meeting of the committee.

Cardoso also announced that the MPC adjusted the asymmetric corridor around the MPR to +500/-100 from +100/-300 basis points; retained the Cash Reserve Ratio (CRR) of commercial banks at 45 per cent.

The committee also retained the CRR and Liquidity Ratio of merchant banks at 14 per cent and 30 per cent, respectively.

Cardoso said that the meeting, which had 11 members of the MPC present, reviewed recent economic and financial developments, and assessed risks to the outlook.

According to him, the committee was mindful of the effect of rising prices on households and businesses, and also expressed its resolve to take necessary measures to bring inflation under control.

“It re-emphasised its commitment to the CBN’s price stability mandate and remained optimistic that despite the June uptick in headline inflation, prices are expected to moderate in the near term.

“This is hinged on monetary policy gaining further traction, in addition to recent measures by the fiscal authority to address food inflation.

“In its consideration, the committee noted the persistence of food inflation, which continues to undermine price stability.

“It was observed that while monetary policy has been moderating aggregate demand, rising food and energy costs continue to exert upward pressure on price development,” he said.

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The governor said that the prevailing insecurity in food producing areas and high cost of transportation of farm produce were also contributing to this trend.

According to the CBN governor, members were, therefore, not oblivious to the urgent benefit of addressing these challenges as it will offer a sustainable solution to the persistent pressure on food prices.

Cardoso said that the MPC also had in consideration the increasing activities of middlemen who often finance smallholder farmers, aggregate, hoard, and move farm produce across the border to neighbouring countries.

He said that the committee suggested the need to put in check such activities to address the food supply deficit in the Nigerian market to moderate food prices.

“The MPC, therefore, resolved to sustain collaboration with the fiscal authority to ensure that inflationary pressure is subdued.

“In addition, the committee expressed optimism with the recent stop gap measures by the federal government to bridge the food supply deficit.

“In particular, the 150-day duty free import window for food commodities will moderate domestic food prices.

“It is noteworthy that these measures will not lead to direct injection of liquidity into the economy as to cause further inflation,” he said.

He said that the measure was a welcome development and might prove effective in the short run.

He, however, advised that it was expedient that it should be implemented with a defined exit strategy to avert a possible rollback of the recent gains in domestic food production.

“To support these initiatives, the CBN is already engaging development finance institutions like the Bank of Industry (BOI) to ensure adequate support to industries with a focus on Small and Medium Scale Enterprises (SMEs),” he said.

Cardoso said that the committee also took cognisance of developments in the foreign exchange market.

“The MPC noted the narrowing spread between the various foreign exchange segments of the market, an indication of price discovery and improved market efficiency, thus reducing opportunities for arbitrage and speculation.

“The committee noted that the increase in the level of external reserves would further build confidence for a more stable exchange rate.

“It, thus, urge the apex bank to explore available avenues to improve inflows, especially through diaspora remittances,” he added.

He said that members of the committee also noted the effort of the federal government and private sector towards improving domestic refining capacity.

“This is expected to reduce foreign exchange, currently being expended on the importation of refined petroleum products,” he said.

Source: NAN

The post CBN continues rates tightening, raises interest rate to 26.75% appeared first on Frontpageng.

Mr Yemi Cardoso, the Governor of CBN said this on Tuesday in Abuja, while reading the communique from the 295th meeting of the MPC.

This is the third consecutive tightening of the lending rate, known as the Monetary Policy Rate, MPR, by the MPC under Cardoso.

Source: NAN

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Data from the official trading platform of the FMDQ revealed that the Naira strengthened by N25.09 or 1.78 per cent, compared to the previous day’s rate of N1,408 against the dollar.

However, the total turnover increased to $245.58 million on Tuesday, up from $222.15 million recorded on Monday.

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Meanwhile, at the Investor’s and Exporters’ (I&E) window, the Naira traded between N1,486 and N1,300 against the dollar.

The Central Bank of Nigeria, CBN, had, earlier on Tuesday at its 294th Monetary Policy Committee, MPC, raised Monetary Policy Rate, MPR, by 200 basis points from 22.75 per cent to 24.75 per cent.

CBN governor Yemi Cardoso said that was meant to tackle the nation’s rising inflation.

Source: NAN

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MPR is a short-term, often overnight rate that banks charge one another to borrow funds.

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Governor of the CBN, Mr Yemi Cardoso, announced the raise in a communiqué he read on the 294th meeting of the MPC.

Cardoso announced that the MPC also adjusted the Asymmetric Corridor to +100/-300 basis points around the MPR and retained Cash Reserve Ratio at 45 per cent.

Source: NAN

The post CBN increases inter-bank interest rate to 24.75% appeared first on Frontpageng.

According to a statement by CBN’s Acting Director, Corporate Communications Department, Mrs Hakama Sidi-Ali, the apex bank, consequently, held a two-day strategic session for members of the MPC preparatory to the meeting.

Sidi-Ali said that the session aimed to brainstorm and engage in an in-depth discussion about the committee’s objectives.

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She said that the critical focus areas during the retreat included deliberations on the strategic plan to effect necessary improvements in the monetary policy transmission mechanism.

She said that the sessions were facilitated by former MPC members, monetary policy communication specialists from the IMF and directors of departments critical to the MPC process.

“The valuable insights gained from these discussions will significantly contribute towards the robustness of the forthcoming MPC meetings,” she said.

The last meeting of the MPC was held in July 2023, and was presided over by erstwhile acting governor,  Folashodun Shonubi.

At the July 2023 meeting, the MPC raised the benchmark interest rate, known as the Monetary Policy Rate, MPR, by 25 basis points to 18.75 per cent from 18.50 per cent.

Meanwhile, a calendar of meetings of the Monetary Policy Committee, MPC, for 2024 published on the CBN website indicates that the meetings have been scheduled for February, March, May, July, September and November.

Source: NAN

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