CBN Increases Interest Rate To 18% To Tackle Inflation

This information was provided in the communiqué from the second MPC meeting of the year by CBN Governor Godwin Emefiele on Tuesday.

After the two-day meeting in Abuja, Mr. Emefiele spoke to the media and announced that the committee had decided to maintain the asymmetrical corridor at +100 and -500 basis points around the MPR. Analysts had projected that at the conclusion of the Monetary Policy Committee meeting, neither the Central Bank of Nigeria nor the MPC will increase lending rates.

The governor did say that the minor increase was necessary to lessen the impact of inflation and other economic problems. Since April 2022, when it was 11.50%, the MPR has been increasing.

The rate impacts lending and inflation rates, and, when jacked up, consequently affects upward movement of prices of goods and services.

He said, The MPC committee voted to raise the MPR by 50 basis point to 18 per cent, retain asymmetric corridor at +100 and -500 basis points around the MPR.”