CBN MPC raises interest rate to 18.75%

The Central Bank of Nigeria’s Monetary Policy Committee has moderately hiked monetary policy rates to 18.75 per cent.

The acting Governor of the Central Bank of Nigeria, Mr Folashodun Shonubi, disclosed this on Tuesday at the press briefing at the end of the 292nd MPC meeting.

News recalls that the Central Bank of Nigeria (CBN), in its last MPC meeting, tightened the economy by raising the interest rate to 18.5 per cent.

“The MPC thus resolved by majority to raise the Monetary Policy Rates. Six members voted to raise the MPR, four by 25 basis points, Two by 50 basis points, while five voted to hold the MPR constant. All members voted to narrow the acementric corridor from +100 to -700 basis points at a new level of +100 and -300 basis points around the MPR. In summary, MPC voted to raise the MPR by 25 basis points from 18.5 per cent to 18.75 per cent,” he stated.

He added that the Cash Reserve Ratio (CRR) and Liquidity Ratio (LR) remain at 32.5 per cent and 30 per cent respectively.

The decision of the MPC comes against the backdrop of the continued rise in inflation, which stood at 22.79 per cent in June.

The apex bank further explained that its intention to slightly raise the MPR is to curb further inflationary hikes.