Just In: CBN Increases Interest Rate to 17.5%

The Central Bank of Nigeria Monetary Policy Committee has voted to increase the benchmark interest rate by 100 basis points to 17.5 per cent.

This was disclosed by the CBN Governor, Godwin Emefiele, on Tuesday while reading the communiqué of the first MPC meeting of the year.

This was the fifth time the CBN would increase the interest rate despite advice from manufacturers and some key stakeholders.

The CBN said previous increases were beginning to yield results with the slight drop in the inflation rate recorded in December 2022.

Also Read: Banks Lending Rate to Customers Rises to 29.13%

However, the CBN stressed that there was a need to keep tightening its fiscal policy.

The CBN keeps the asymmetric corridor at +100/-700 basis points around the MPR.

The CBN also retained the CRR at 32.5 per cent while the liquidity ratio was kept at 30 per cent.

The apex bank had increased the MPR from 11.5 per cent earlier last year to 16.5 per cent across four consecutive rate hikes in 2022.

More details later…