Tuesday, January 25, 2011

Central Bank of Nigeria Raises MPR 25bps to 6.5%

The Central Bank of Nigeria (CBN) raised its Monetary Policy Rate by 25 basis points to 6.50% from 6.25%, with the borrowing and lending rates now sitting at 4.5% and 8.5% respectively. The CBN also made moves to tighten liquidity, raising the cash reserve requirement for banks by 100bps to 2% from 1%, and adding 500bps to the liquidity ratio, now 30% from 25% previously. Nigeria recorded inflation of 11.8% in December, and GDP growth of 7.8% in 2010.


Post a Comment