CBN MPC Raises Interest Rate To 18.5%

Central Bank of Nigeria (CBN) has increased its monetary policy interest rates to 18.5 per cent.

Naija News understands that the decision was taken following a meeting by the Monetary Policy Committee (MPC) of the apex bank on Wednesday, May 24.

The MPC voted to increase the benchmark interest rate by 50 basis points to 18 per cent.

While reading the communique of the third MPC meeting of the year on Wednesday (today), CBN Governor, Godwin Emefiele, said the committee voted to keep the asymmetric corridor at +100 and -700 basis points around the MPR.

Justifying the rising inflation rate, the MPC blamed the high energy cost and challenges around the supply chain, among others, which are beyond the reach of the CBN.

Emefiele added: “The current trend in price development would continue to be monitored by the bank with greater collaboration with fiscal authority to address the drivers of inflation.”

Analysts in the country had predicted the CBN and the MPC might raise the lending rates at the end of the Monetary Policy Committee.

The apex bank had increased the MPR from 11.5 per cent earlier last year to 18 per cent in March this year across six consecutive rate hikes.

More details shortly…