The Monetary Policy Committee (MPC) of the Central Bank of Nigeria has concluded its two-day meeting for March 2024, marking the second MPC gathering of the year and the 294th meeting of the CBN.
Following deliberations, the MPC has decided to implement significant changes in monetary policy.
In a notable move, the MPC has elected to increase the Monetary Policy Rate (MPR) by 200 basis points, raising it from 22.75% to 24.75%.
Additionally, the Committee has adjusted the asymmetric corridor to +100bps/-300 basis points.
While the MPR hike indicates a tightening stance, the MPC has opted to retain the Cash Reserve Ratio (CRR) of Deposit Money Banks at 45%. However, there’s been a modification in the CRR for Merchant banks, which has been raised from 10% to 14%.
Moreover, the CBN has chosen to maintain the liquidity ratio at 13%.
These decisions reflect the MPC’s proactive measures in response to prevailing economic conditions. Further details on the implications and rationale behind these moves are expected to follow.
