Business
CBN boosts interest rates to 18.5% in response to growing inflation
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria has raised the interest rate by another 18.5 percent, to 20.5 percent from 18 percent in March.
This was revealed on Wednesday during the presentation and analysis of the MPC statement by Godwin Emefiele, the governor of Central Nigeria.
He clarified that the decision was made to stop Nigeria’s increasing inflation.
He said, “The inflationary forces you see now facing us are a worldwide phenomena and this began in 2022, making our steps to raise the MPR rates powerful.
To combat inflation, the policy-setting body increased the MPR in March from 17.5 to 18%. The MPR has continued to rise since May of last year, but the National Bureau of Statistics reports that in April of 2023, Nigeria’s inflation rate had risen to 22.22 percent.
The MPR serves as the foundational interest rate for an economy, upon which all other interest rates are constructed.