JUST IN: First Time In Over 2 Years, CBN MPC Raises Interest Rate To 13%

In its 142nd meeting, the Monetary Policy Committee of the Central Bank of Nigeria (CBN) has increased benchmark interest rates to 13 percent.

The Governor of the Central Bank, Godwin Emefiele, while reading the communique says the action was to tame the raising inflation rate in the country.

The apex bank boss announced this development on Tuesday in Abuja, explained that the decision to increase the benchmark interest rate was taken at the Monetary Policy Committee (MPC) meeting held yesterday and today.

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While addressing financial reporters this afternoon, Emefiele says members of the committee were unanimous with the decision to hike the rates as it was the best thing to do after holding them for about two years.

Adding that one of the reasons for raising the rate is to control liquidity ahead of the 2023 general elections as politicians would be expected to flood the system with cash in a bid to woo voters.

The other parameters were left unchanged by members at the gathering as the Asymmetric corridor remained around the MPR at +100/-700bps, the Cash Reserve Ratio (CRR) at 27.5 per cent and the Liquidity Ratio (LR) at 30.0 per cent.

Emefiele, however, noted that the rate on development finance loans will remain at 5 percent till 2023.