The Central Bank of Nigeria (CBN) has announced that the 297th Monetary Policy Committee (MPC) meeting will be held on Monday and Tuesday next week, September 23 and 24, 2024 at the CBN headquarters in Abuja.
The CBN held the 296th MPC meeting under Olayemi Cardoso, governor of the Bank, on July 23 and 24, 2024 when it raised the Monetary Policy Rate (MPR) by 50 basis points, the lowest hike since Cardoso assumed office.
The MPR, also known as the benchmark interest rate, was raised to 26.75 from 26.25 percent with an eye on combating inflation and fostering a favorable climate for foreign investment.
The asymmetric corridor was expanded to +500/-100 basis points, while liquidity ratio was retained at 30 percent.
The cash reserve ratio (CRR) was retained at 45 percent for deposit money banks and at 14 percent for merchant banks.
This year, the MPC has aggressively implemented a cumulative rate hike of approximately 800 basis points since February 2024, alongside adjustments to other monetary tools, to combat rising inflation. In comparison, 2023 saw a total rate hike of 225 basis points.
In August, food supply improved in the Nigerian market due to the harvest season, forcing headline inflation to 32.15 percent.
According to the National Bureau of Statistics (NBS), inflation decreased to 32.15 percent in August 2024 from 33.40 percent in the previous month, as prices of tomatoes, pepper, yam and other food products dropped.
In its recent report, titled, “Monetary Credit Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2024-2025”, published on Tuesday the CBN has asserted its plan to maintain orthodox monetary policies focused on bringing down inflation.
“Furthermore, the CBN will implement an explicit inflation-targeting framework to enhance the effectiveness of monetary policy during the period. Under the new monetary policy implementation framework, the CBN will provide forward guidance, enhance transparency, and maintain effective communication with the public to anchor expectations and build trust among stakeholders,” the report stated.
