Just in: CBN raises interest rate to 18.75%

Just in: CBN raises interest rate to 18.75%

The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR), which measures interest rate, from 18.5 per cent to 18.75 per cent.
Acting CBN Governor, Folashodun Shonubi, announced this on Tuesday after the bank’s Monetary Policy Committee (MPC) meeting in Abuja.

He said the MPC voted to hike the MPR by 25 basis points to stem inflation.

He also said the volatility around foreign exchange rates would soon normalise.

It is the first decision of the monetary committee since Godwin Emefiele was suspended as the governor of the apex bank on June 9, 2023.

Nigeria’s inflation rose to 22.79 per cent in June from the 22.41 per cent recorded in May 2023 amid rising food prices and high cost of transportation due to the removal of fuel subsidy.

Shonubi, who addressed newsmen at the CBN headquarters in Abuja on Tuesday, said, “Hiking the interest rate has made a lot of difference in moderating the rate of inflation.”