The Central Bank of Nigeria, CBN has raised the interest rate to 17.5% from 16.5% to tame rising inflation.
The Monetary Policy Committee (MPC) of the apex Bank announced the decision on Tuesday at the end of its Monetary Policy Committee (MPC) meeting in Abuja.
CBN governor, Godwin Emefiele, who chaired the meeting, noted that MPC noted that "although the inflation rate moderated marginally in December, the economy remains confronted with the risk of high inflation with adverse consequences on the general standard of living."
“One member voted to increase the Monetary Policy (MPR) by 150 basis points, four members by 50 basis points, and seven members by 100 basis points. In summary, the MPC voted to raise the MPR to 17.5 percent," the CBN governor said.
Emefiele revealed that the committee also voted to "retain the asymmetric corridor at +100 and -700 basis points around the MPR."
In addition, the committee also voted to "retain the cash reserve ratio (CRR) at 32.5 percent and keep the liquidity ratio at 30 percent."
