Mohammed Shosanya
The Central Bank of Nigeria (CBN) has increased the monetary policy rate (MPR), which measures interest rate, from 18 percent to 18.5 percent.
Godwin Emefiele, governor of the apex bank,who disclosed this the to journalists on Wednesday after the committee’s meeting at the CBN headquarters in Abuja,said development is the third consecutive time the apex bank will be raising the benchmark rate in 2023.
Emefiele said the policy-setting committee committee members voted to raise the rate by 50 basis points to 18.5 percent, retain the asymmetric corridor at +100 and -700 basis points around the MPR, retain the cash reserve ratio (CRR) at 32.5 percent and liquidity ratio at 30 percent.
He added:“The current trend in price development wouldcontinue to be monitored by the bank with greater collaboration with fiscal authority to address the drivers of inflation”.
He said although the continued rise in headline inflation remained a significant problem confronting the economy, other macroeconomic variables are moving in the right direction despite observed headwinds.