CBN increases interest rates to 18%

According to The PUNCH, the Central Bank of Nigeria’s Monetary Policy Committee has decided to raise the benchmark interest rate by 50 basis points to 18%.

In reading the communiqué from the second MPC meeting of the year on Tuesday, CBN Governor Godwin Emefiele made this disclosure.

Speaking to the media at the conclusion of the two-day meeting in Abuja, Mr. Emefiele stated that the committee had decided to maintain the asymmetrical corridor at +100 and -500 basis points around the MPR.

The MPC and the Central Bank of Nigeria may not increase lending rates at the conclusion of the Monetary Policy Committee, according to local analysts.

Yet according to the governor, the minor increase is necessary to lessen the impact of inflation and other economic problems.

Since it reached 11.50% in April 2022, the MPR has been increasing.

When the rate rises, it influences lending and inflation rates, which, in turn, affects the rise in the cost of goods and services.

According to him, the MPC committee decided to keep the asymmetrical corridor at +100 and -500 basis points around the MPR and boost it by 50 basis points to 18%.

More information will be provided later…