Why CBN Raised Benchmark Interest Rate from 16% to 18%

The Monetary Policy Council of the Central Bank of Nigeria has decided to raise the benchmark interest rate from 16 percent to 18 percent, resulting in a 50 basis point rise.

On Tuesday, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, made this announcement while reading the communiqué from the second Monetary Policy Committee meeting of the year.

Mr. Emefiele added that the committee resolved to maintain the asymmetric corridor at +100 and -500 basis points around the MPR. He was speaking to journalists at the conclusion of the two-day meeting that took place in Abuja.

He explained that the reason for the modest price hike is to help combat the effects of inflation as well as other economic difficulties.

Since April 2022, when it stood at 11.50 percent, the MPR has been steadily climbing upwards.

He stated that the MPC committee voted to raise the MPR by 50 basis points to 18 percent, and to keep the asymmetric corridor around the MPR between +100 and -500 basis points.

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