CBN’s MPC raises interest rate to 17.5%

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WorldStage Newsonline– The Monetary Policy Committee (MPC) of the Central Bank of Nigeria rose from its two dat y meeting today with a vote to increase the benchmark interest rate by 100 basis points to 17.5 per cent.

While the MPC kept the asymmetric corridor at +100/-700 basis points around the MPR, it retained the CRR at 32.5 per cent while the liquidity ratio was kept at 30 per cent.

The apex bank had increased the MPR from 11.5 per cent earlier last year to 16.5 per cent across four consecutive rate hikes in 2022.

The CBN Governor, Godwin Emefiele who read the communiqué of the first MPC meeting in Abuja stressed that there was a need to keep tightening its fiscal policy.

This is the fifth time the CBN would increase the interest rate despite advice from manufacturers and some key stakeholders.

The CBN said previous increases were beginning to yield results with the slight drop in the inflation rate recorded in December 2022.