CBN has raised the interest rate to 20.5 percent amid the rising inflation in Nigeria.
NewsOnline reports that the Central Bank of Nigeria’s Monetary Policy Committee, MPC has further increased the interest rate by 2.5 per cent to 20.5 per cent from 18 per cent in March.
This online newspaper understands that Godwin Emefiele, the Governor of Central Nigeria, disclosed this on Wednesday during the MPC communique presentation and Analysis.
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He explained that the decision is to curtail the rising inflation in Nigeria.
“Our actions to increase the MPR rates are potent because the inflationary pressures you see today confronting us are a global phenomenon and this started in 2022”, he stated.
In March, the policy-setting committee raised the MPR from 17.5 to 18 per cent in February to tackle inflation. However, despite the continued hike of MPR since last year May, the inflation of Nigeria had increased to 22.22 per cent in April 2023, according to the National Bureau of Statistics.
The MPR is the baseline interest rate in an economy on which other interest rates within that economy are built.
More details to come..