CBN Raises Interest Rate To 15.5% to Curb Inflation

The Central Bank of Nigeria (CBN), Monetary Policy Committee has again raised the interest rate by 150 basis points to 15.5%.

The raise is the third time that the apex bank will increase rates in the last six months bringing the total raise to 400 basis points.

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The Central Bank Governor, Godwin Emefiele who disclosed the position of the MPC noted that the raise was to reign in inflation in the country.

The MPC also increase Cash Reserve Ratio (CRR) to a minimum of 32.5 per cent minimum and the Liquidity ratio was pegged at 30 per cent.

By increasing the CRR, Emefiele said all the banks in Nigeria must fund their accounts latest by Thursday “because we will debit their account by Thursday.”

He sadded that any bank that fails to fund its account will face sanctions, including denial of access to Forex.