Why We Raised Interest Rate To 13.5% -CBN

The Central Bank of Nigeria has raised the interest rate to 13.5 per cent in order to prevent looming inflation in the country.

The CBN Governor, Godwin Emefiele, announced this on Tuesday while addressing the reporters after the Monetary Policy Committee meeting in Abuja.

Shedding light on the increase, Emefiele said the MPC is suspicious “there might be an aggressive accretion of inflation”.

To prevent the looming inflation, he said, the MPC had to increase the monetary policy rate by 150 basis points.

He said six out of eleven committee members voted to raise the key rate.

According to him,the committee also voted to retain the asymmetric corridor at +100 and -700 basis points around the MPR and liquidity ratio at 30 per cent.