CBN increases interest rate to 18.50%

CBN increases interest rate to 18.50%

The Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR) to 18.50 per cent.

The Governor of the CBN, Godwin Emefiele, announced the interest rate hike on Wednesday at a press conference in Abuja.

He said they raised the benchmark interest rate to curb inflation.

The CBN governor said the monetary policy committee considered a perennial scarcity of petrol, the 2023 general elections, continuous rise in energy prices, exchange rate pressure and rise in insecurity.

Emefiele said, “The MPC was of the view that although the inflation rate moderated marginally in December, the economy remained confronted with the risk of high inflation with adverse consequences on the general standards of living.

“Committee, therefore, decided to sustain the current stance of policy at this point in time to further rein in inflation aggressively.

“MPC voted to raise the MPR to 17.5%, retain the asymmetric at +100/-700 basis points around the corridor.”