by Kazim Ugbodga
The Central Bank of Nigeria (CBN) on Wednesday raised the interest rate from 18 percent to 18.5 percent in a bid to contain rising inflation.
CBN Governor Godwin Emefiele disclosed this at a press conference in Abuja.
He said that the Monetary Policy Committee (MPC) of the CBN has increased the Monetary Policy Rate (MPR) by 50 basis points from 18.0% to 18.5%.
He added that the apex bank has retained the Cash Reserve Ratio (CRR) around MPR at 32.5%, Liquidity Ratio (LR) at 30.0% and Asymmetric Corridor at +100/-700 basis points.
According to Emefiele, the current trend in price development will be closely monitored by the bank with greater cooperation with the fiscal authority to address the drivers of inflation.
The CBN had increased the MPR from 11.5 per cent last year to 18 per cent in March this year.