The Central Bank Monetary Policy Committee has voted to increase the benchmark interest rate (MPR) by 100 basis points to 16.5%. This is the highest since 2001.
This was disclosed by the CBN Governor, Godwin Emefiele, while reading the communique of the last MPC meeting of the year on Tuesday, 22nd November 2022.
According to them, the tightening will help restore investors’ confidence whilst keeping in check the higher rate of inflation.
What Does The CBN Monetary Policy Committee Entails
The statement states that;
- Increase MPR by 100 basis points to 16.5%
- The asymmetric corridor of +100/700 basic points around the MPR was retained
- CRR was retained at 32.5%
- While the Liquidity Ratio was also kept at 30%
MPR Increased From 11.5% TO 15.5%
It would be recalled that the apex bank increased the MPR from 11.5% earlier this year to 15.5% across three consecutive rate hikes.
It was reported that Nigeria’s money supply rose to its highest level at N50.5 trillion at the end of October 2022. This is an increase of N1.26 trillion from the previous month.
In October 2022, Nigeria’s inflation rate rose to 21.09% from 20.77% recorded in the previous month. This is an indication of a further rise in the cost of goods and services, despite the aggressive move by the CBN over time.
More details coming soon…..
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