BREAKING: CBN Increases Interest Rate to 18 Percent, Says Nigerian Banks Healthy 

The Monetary policy Committee (MPC) of the Central Bank of Nigeria (CBN) has increased Monetary Policy Rate (MPR) which measures interest rate to 18 percent from the previous 17.5 percent adopted in January.

This was part of the decisions taken during the 2-day MPC meeting held between Monday and Tuesday.

Last week, Nigeria’s inflation rate rose to 21.9 percent amid the lingering scarcity of cash.

The MPR is the baseline interest rate in an economy, every other interest rate used within an economy is built on it.

The CBN governor, Godwin Emefiele, announced the development to journalists on Tuesday in Abuja.

Emefiele also said Nigerian Deposit Money Banks (DMBs) are in sound and healthy state and there is no cause for alarm over their reliability.

Emefiele who passed a vote of confidence on the DMBs said given various prudential guidelines designed to shield the banking sector, there is nothing to worry about on the health status of Nigerian banks.