The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has increased the benchmark interest rate by 200 basis points to 24.75 per cent.

This is according to a communique by the CBN governor, YEMI CARDOSO after the second MPC meeting of his tenure in Abuja.

The new interest rate is a jump from the 22.75 per cent announced by the MPC about a month ago and the second rate hike by the current committee.

CARDOSO announced the retention of the Cash Reserve Ratio of deposit money banks at 45 per cent. 

However, the MPC adjusted the Cash Reserve Ratio of merchant banks from 10 per cent to 14 per cent.

The committee also retained the liquidity ratio at 30 per cent.

The apex bank boss said the moves are part of efforts to combat the country’s rising inflationary rate which was pegged at 31.70 per cent in February.