APA – Lagos (Nigeria)
The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR), which measures interest rate, from 18.5 percent to 18.75%.
The Acting Governor of the CBN, Mr. Folashodun Shonubi, told journalists on Tuesday after the bank’s Monetary Policy Committee (MPC) meeting in Abuja that “hiking the interest rate has made a lot of difference in moderating the rate of inflation”.
He added that the MPC voted to raise the MPR by 25 basis points to 18.75% from 18.5%.
According to him, the committee narrowed the asymmetric corridor to +100/-300 from +100/-700 and retained the Cash Reserve Ratio (CRR) at 32.5%
He stated that the volatility around the foreign exchange rates would soon normalise.
This is the first resolution of the Monetary Policy Committee meeting since President Bola Tinubu’s assumption of office on May 29, 2023 and the suspension of the CBN, Godwin Emefiele on June 9, 2023.
Nigeria’s inflation rate in June rose to 22.79% from 22.41% recorded in May 2023.
GIK/APA