The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR), which measures interest rates, by 50 basis points, from 26.25% to 26.75%, amid soaring inflation and skyrocketing food prices.

CBN Governor, Olayemi Cardoso, announced this after the apex bank’s 296th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday. The MPC also adjusted the asymmetric corridor around the MPR from +100 to -300 to +500 to -100 basis points. Additionally, the committee retained the Cash Reserve Ratio (CRR) of deposit money banks at 45% and merchant banks at 14%, and maintained the Liquidity Ratio at 30%.

Cardoso said the committee was mindful of the impact of rising prices on households and businesses and expressed its determination to take necessary measures to bring inflation under control. He noted that despite the uptick in inflation in June 2024, prices are expected to moderate in the near term as monetary policy gains further traction, complemented by additional measures by the fiscal authorities to address food inflation.

The MPC expressed concern that food inflation and rising energy costs continued to undermine price stability. Nigeria’s inflation reached an all-time high in June, hitting 34.19%, according to the latest data from the National Bureau of State Statistics (NBS). Food inflation also rose in June 2024 to 40.87% year-on-year, compared to 40.66% in May 2024, which is 15.62% higher than the 25.25% recorded in June 2023.