The Monetary Policy Committee (MPC) at the end of today’s meeting elected to further hike the MPR and retain other policy parameters.
The decisions reached are as follows:
- The benchmark interest rate (MPR) raised by 100bps to 16.50% from 15.50%
- The asymmetric corridor remained at +100/-700 bps around the MPR
- The cash reserve ratio retained at 32.50%; and
- The Liquidity Ratio retained at 30.00%
It will be recalled that the MPC hiked the MPR at the end of its third meeting of the year in May 2022 to 13% from 11.50%. Another hike was announced in July 2022 from 13 to 14% and a further hike in September to 15.5%
The MPC has so far raised the MPR by 500 basis points in the year 2022.
Further commentaries to follow…