The Monetary Policy Committee (MPC) of the CBN raised Monetary Policy Rate (MPR) – inter-bank loan interest rate – by 200 basis points, to 24.75 per cent from 22.75 per cent on Tuesday.
MPR is a short-term, often overnight rate that banks charge one another to borrow funds.
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.