The equity market rose 0.11 per cent on Tuesday, amidst the Central Bank of Nigeria’s Monetary Policy Committee raising the policy rate to 26.25 per cent.
Notably, investors’ sustained buy interest in banking and consumer goods sectors maintained the market’s upward trajectory.
The News Agency of Nigeria(NAN) reports that CBN-MPC on Tuesday increased the benchmark interest rate by 150 basis points to 26.25 per cent from 24.75 per cent set in March.
Mr Yemi Cardoso, CBN Governor, stated this at the news conference following the 295th MPC meeting of the regulator.
Cardoso said the apex bank retained the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBs) at 45 per cent and put the Asymmetric corridor around the MPR at +100 and –300 basis points.
CBN further set the liquidity ratio of banks at 30 per cent
The CBN Governor attributed the third consecutive hike in bank interest rates in 2024 to continued efforts towards moderating inflation which reached 33.69% in April 2024 according to the National Bureau of Statistics (NBS).
Reacting, a stock broker, Mr Victor Ibrahim said that investors did not react to the CBN-MPC decision because the hike on the monetary policy rate is targeted at tightening inflationary pressure as a result of increase in prices of goods.
