CBN Resets Monetary Policy Rate to 23%

The Central Bank of Nigeria (CBN) has reset the Monetary Policy Rate (MPR) to 23.00 per cent as part of measures aimed at strengthening monetary policy transmission and improving the alignment of market rates with its policy framework.

The decision was taken at the 307th meeting of the CBN Monetary Policy Committee (MPC), which also retained the Cash Reserve Requirement (CRR) at 45.00 per cent for Deposit Money Banks, 16.00 per cent for Merchant Banks and 75.00 per cent for non-TSA public-sector deposits.

The apex bank also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR.

CBN Governor, Olayemi Cardoso, said the adjustment was aimed at strengthening the effectiveness of monetary policy operations.

“The reset of the MPR and recalibration of the policy corridor constitute an important operational realignment aimed at strengthening monetary policy transmission and reinforcing the primacy of the Monetary Policy Rate,” Cardoso said.

He stressed that the decision should be viewed as an operational reset rather than a shift in the direction of monetary policy.

According to him, the move is designed to better align market rates with the monetary policy framework and improve the transmission of monetary policy decisions across the economy.

The MPC’s decision means that while the MPR has been reset at 23 per cent, the existing CRR requirements for banks and specified public-sector deposits remain unchanged.