The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR), which measures interest rate, from 18.5 percent to 18.75%.
Folashodun Shonubi, acting CBN Governor, said on Tuesday after the apex bank’s Monetary Policy Committee (MPC) meeting in Abuja.
The meeting, which was the first decision of the monetary committee since President Bola Tinubu’s assumption of office on May 29, 2023, is also the first decision of the committee since the suspension of embattled Godwin Emefiele as the governor of the apex bank on June 9, 2023.
Addressing journalists at the CBN headquarters in Abuja on Tuesday, Shonubi said that hiking the interest rate has made a lot of difference in moderating the rate of inflation, which rose to 22.79 percent in June from the 22.41 percent recorded in May 2023.
The CBN MPC voted to hike MPR by 25 basis points to 18.75 percent from 18.5 percent. The committee narrowed the asymmetric corridor to +100/-300 from +100/-700 and retained the Cash Reserve Ratio (CRR) at 32.5 percent.
