CBN Raises Nigeria’s Interest Rate to 13%
The Central Bank of Nigeria (CBN) Tuesday resolved to raise the Monetary Policy Rate (MPR), otherwise known as the interest rate by 150 basis points to 13 per cent from 11.5 per cent.
This is the first time the apex bank has raised MPR in two and a half years.
CBN Governor, Mr. Godwin Emefiele, at the end of the two-day Monetary Policy Committee(MPC) meeting disclosed that the development was in response to the global inflationary pressures.
The rate which had been at 11.5% since September 2020, in a bid to spur recovery from the recession recorded due to the covid-19 has now been raised by the apex bank after inflation rate rose above 16%.
CBN’s move is targeted at curbing the rising rate of inflation in the country, while still cautiously ensuring economic growth. Highlights of the meeting include the retention of the asymmetric corridor of +100/-700 basis points around the MPR, Cash Reserve Ration(CRR) was retained at 27.5%, while the Liquidity Ratio was also kept at 30%
