The move, made barely one month after it raised the interest rate to 22.75 percent, was in consideration of the current inflationary pressures and the need to anchor inflation expectations as well as ensure sustained exchange rate stability, Yemi Cardoso, governor of the Central Bank of Nigeria (CBN), who chairs the Monetary Policy Committee, told the media at the end of a meeting in the capital of Abuja.
"Members (of the monetary policy committee) noted the continued rise in headline inflation driven largely by food prices, because of supply shortages, and high cost of logistics and distribution," Cardoso said. "The committee, therefore, was of the view that addressing food insecurity is key to containing current inflationary pressures."
While the cash reserve ratio for commercial banks was retained at 45 percent, the cash reserve ratio for merchant banks was adjusted from 10 percent to 14 percent, the apex bank's chief said. The liquidity ratio was retained at 30 percent.
The decision to raise interest rates is expected to have wide-ranging implications across various sectors of the economy, a local expert told Xinhua in an earlier interview.
Nigeria's headline inflation soared from 29.90 percent to 31.70 percent in February due to a continuous surge in food prices, according to the latest data by the National Bureau of Statistics.
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