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Rising inflation: CBN raises interest rate to 14%

The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR), which measures interest rate, from 13 percent to 14 per cent.

The latest development was disclosed by the CBN Governor, Godwin Emefiele, while speaking to newsmen on Tuesday after the 286th meeting of the Monetary Policy Committee (MPC) held in Lagos.

He said the hike in interest rate would help tame rising inflation.

The MPR is the baseline interest rate in an economy while every other interest rate used within such an economy is built on it.

Emefiele had in May 2022 disclosed that the CBN Monetary Policy Committee voted to raise the MPR from 11.5 per cent to 13 per cent.

The CBN Governor, who made the disclosure while briefing newsmen at the end of MPC’s 285th meeting at the apex bank’s headquarters in Abuja, said six out of the 11 members of the committee voted to raise the key rate.

He had said the committee also voted to retain the asymmetric corridor at +100 and -700 basis points around the MPR, as well as Cash Reserved Ratio (CRR) at 30 per cent.

The Star

Segun Ojo

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