January 2023 MPC Meeting : CBN Raises MPR to 17.50%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria has today concluded its two-day meeting for January 2023 where it raised interest rate by 100 basis points to 17.50%.

The meeting marks the first MPC meeting for the year 2023.

The Monetary Policy Committee (MPC) at the end of today’s meeting elected to further hike the MPR by 100 basis points after raising the key benchmark indicator by 500 basis points in year 2022 and retain other policy parameters.

The decisions reached are as follows:

• The benchmark interest rate (MPR) raised by 100bps to 17.50% from 16.50%
• 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 CBN 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% while the final hike in year 2022 was witnessed in November when the apex bank jacked it up another 100bps to 16.50%.

Details later… (January 2023 MPC Meeting)