The Central Bank of Nigeria, CBN, on Wednesday, increased its monetary policy interest rates from 18 percent to 18.5 percent after the Monetary Policy Committee, MPC, unanimously voted for the increase at its’ third meeting of the year.
Credible News reports that this development is the third consecutive time the apex bank will be raising the Monetary Policy Rate, MPR, which measures the interest rate.
Recall that earlier in January, the CBN raised the interest rate from 16.5% to 17.5 percent to tame inflation. Also, in March, the MPC of the bank voted to increase the benchmark interest rate by 50 basis points to 18 per cent.
Mr. Emefiele, while addressing journalists at the end of the two-day meeting in Abuja, said the committee voted to keep the asymmetric corridor at +100 and -700 basis points around the MPR.
Justifying the rising inflation rate, the MPC blamed the high energy cost and challenges around the supply chain, among others, which are beyond the reach of the CBN.
He added that 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.
Analysts in the country had predicted the CBN and the MPC might raise the lending rates at the end of the Monetary Policy Committee.
