Highlights

Contrary to widespread expectations to maintain the monetary policy rate, the MPC increased it by 50 basis points, raising it from 26.75% to 27.25%. The Committee also raised the Cash Reserve Ratio (CRR) for Deposit Money Banks (DMBs) by 500bps from 45.00% to 50.00% and the CRR for Merchant Banks by 200bps from 14.00% to 16.00%. The asymmetric corridor was maintained at +500/-100 basis points around the MPR while the liquidity ratio was retained at 30%.

In Summary:

—> Monetary Policy Rate: 27.25% from 26.75%.

—> Asymmetric Corridor: +500/-100 basis points around the MPR.

—> CRR: 50.00%.

—> CRR of Merchant Banks: 16.00%.

—> Liquidity Ratio: 30.00%.

Click here “September 2024 MPC Decision – Unexpected Hike in Response to Inflation and Foreign Exchange Worries” to view the full report.

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