MPC Rate Hike; The AAM Report

The CBN’s Monetary Policy Committee (MPC) concluded its fourth meeting of the year yesterday July 19th, 2022. In a not so surprising turn of events, the benchmark interest rate was increased by 1.00% to 14.00%, following a decision by eleven members of the committee to hike rates. This decision came after a 1.50% rate hike in May and the committee hinted on a further hike if inflationary pressures persist. The committee however maintained all other policy parameters; the Cash Reserve Ratio (CRR) at 27.50%, the Liquidity Ratio at 30.00%, and the Asymmetric corridor at +100bps and -700bps around the MPR.