Following the 296th CBN Monetary Policy Committee (MPC) meeting held on the 22nd and 23rd of July 2024, the committee decided to extend their restrictive monetary policy measures for the fourth (4th) consecutive meeting this year. These measures reflect the committee’s ongoing efforts to manage inflation and stabilize the economy. Notably, this is the slowest increase this year by the Committee.

Key decisions include:

• Increase in MPR: Hiked by 50bps to 26.75%
• Adjustment of Asymmetric Corridor: Set to +500/-100bps around the MPR
• Cash Reserve Ratio (CRR):

• • Retained at 45% for commercial banks
  • Retained at 14% for merchant banks
• Liquidity Ratio: Maintained at 30%

We expect the Committee to make use of the monetary tools in their arsenal by either keeping rates at current levels or raising it by an additional 50-100bps (this has the lower probability among the two options) during the rest of H2:2024.

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