The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), on Wednesday, increased the interest rate to 18.5 per cent.
The MPC had in March this year, voted to increase the benchmark interest rate by 50 basis points to 18 per cent.
The CBN Governor, Godwin Emefiele, announced the new interest rate while reading the communique of the third MPC meeting of the year on Wednesday.
Addressing journalists at the end of the two-day meeting in Abuja, Nigeria’s capital, CBN Governor Emefiele, said the committee voted to keep the asymmetric corridor at +100 and -700 basis points around the MPR.
Justifying the rising inflation rate, the Monetary Policy Committee of the CBN blamed the high energy cost and challenges around the supply chain, among others, which are beyond the reach of the CBN.
“The current trend in price development would continue to be monitored by the bank with greater collaboration with fiscal authority to address the drivers of inflation,” he said.
The apex bank had increased the MPR from 11.5 per cent earlier last year to 18 per cent in March this year across six consecutive rate hikes.
The decision of the CBN is made on the back of the rising inflation rate in the Nigerian economy.
Headline inflation rose to 22.22% in April 2023 from 22.04% recorded in the previous month, representing its highest level since September 2005.
CBN’s interest rate at 18.5% represents its highest level in 22 years. (vitalnewsngr.com)
