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The apex bank took the hawkish stance on Tuesday at the 294th Meeting of the Monetary Policy Committee in Abuja.
In the February MPC meeting, the committee unanimously voted to raise the benchmark interest rate to 22.75 per cent considering surging inflation.
Experts had predicted another interest rate hike after inflation rose to 31.7 per cent in February up from 29.90 percent in January of 2024.
The CBN Governor Olayemi Cardoso, who dumped the unorthodox monetary policy approach of his predecessor, Godwin Emefiele, has been battling a depreciating naira, unstable foreign exchange reserves and inflation.
“Adjust the cash reserve ratio of merchant banks from 10 per cent to 14 per cent and retain the liquidity ratio at 30 per cent.”
Cardoso said the focus of the consideration was on the rising inflation, the need to anchor inflation expectations and ensure exchange rate stability.
Nigeria’s money supply hit a historic N95.56 trillion in Feb 2024 despite MPC’s tightening stance
Cardoso also said the decisions by the committee was to contain the money supply which has also contributed to inflation.
