The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) 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, retained the Cash Reserve Ratio (CRR) at 45% for deposit money banks and 14% for merchant banks, and kept the Liquidity Ratio at 30%.

Cardoso emphasized the committee's awareness of the impact of rising prices on households and businesses, reaffirming their commitment to necessary measures to control inflation. Despite the inflation uptick in June 2024, he expressed optimism that prices would moderate soon as monetary policies gain traction and fiscal measures address food inflation.

The MPC is particularly concerned about food inflation and rising energy costs undermining price stability. Nigeria’s inflation reached an all-time high in June, hitting 34.19%, according to the National Bureau of Statistics.