The Central Bank of Nigeria (CBN) has increased the monetary policy rate to 27.50%, up from 27.25%. This marks the sixth consecutive interest rate hike since February 2024.

Governor Olayemi Cardoso announced the decision following the Monetary Policy Committee (MPC) meeting held in Abuja.

The MPC voted unanimously to raise the rate by 25 basis points and decided to maintain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.

“The Committee was unanimous in its agreement to raise the monetary policy rate to 27.50 percent,” Cardoso stated.

He also confirmed that the Liquidity Ratio (LR) remains unchanged at 30%, along with the Asymmetric Corridor set at +500/-100 basis points around the MPR.

Cardoso indicated that the decision was influenced by renewed inflationary pressures, with headline food and core inflation measures rising year-on-year in October 2024.

In September, the CBN had previously raised the MPR by 50 basis points from 26.75% to 27.25%. This ongoing series of rate increases has raised concerns among small business owners, who fear it may lead to further contraction of businesses and job losses as firms downsize in response to higher borrowing costs.