The Central Bank of Nigeria (CBN) has raised its benchmark interest rate to 27.25% from 26.75%, as part of efforts to address inflation.

This was announced by CBN Governor, Olayemi Cardoso following the Monetary Policy Committee (MPC) meeting held in Abuja today. The committee’s decision aims to further moderate inflationary pressures and ensure economic stability.

In addition to the rate hike, the MPC adjusted the Cash Reserve Ratio (CRR) for commercial banks to 50% while retaining the liquidity ratio at 30%. The CBN also noted a decline in inflation, with the rate dropping to 32.15% in August from 33.40% in July, citing the bank’s tight monetary policies as a key factor.

Governor Cardoso reiterated the committee’s focus on maintaining exchange rate stability and managing inflation risks, particularly as energy prices continue to drive core inflation.