The Central Bank of Nigeria (CBN) has moderately raised the monetary policy rate (MPR) from 18.5% to 18.75%.

Monetary Police Rate is the baseline interest rate in an economy on which every other interest rate used within the economy is built on it.

Acting CBN Governor, Mr Folashodun Shonubi disclosed the hike in MPR at the 292nd Meeting of the Monetary Policy Committee (MPC) press briefing on Tuesday.

“In summary, the MPC voted to raise the policy rate by 25 basis point from 18.5% to 18.75%; adjust the asymmetric corridor to +100, -300 basis point around the MPR; retain the CRR at 32.5% and retain the liquidity ratio at 30%,” Mr Shonubi stated.

CRR is the share of a bank’s total customer deposit that must be kept with the central bank in the form of liquid cash, while the bank’s liquidity ratio is the proportion of deposits and other assets they must maintain to be able to meet short-term obligations.