The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR) from 13 per cent to 14 per cent.
The CBN Governor, Mr Godwin Emefiele, who made this known on Tuesday, while addressing newsmen after the the 286th meeting of the MPC in Lagos.
According to the apex bank governor, the decision to raise the interest rate would help address Nigeria’s rising inflation.
Emefiele said the committee resolved that the most rational policy option would be to strengthen its tightening stance in order to effectively curtail the rising trend of inflation.
The CBN however, retained other parameters, leaving the asymmetric corridor at +100 and -700 basis points around the MPR, and the Cash Reserve Ratio (CRR) at 27 percent, while the liquidity ratio was retained at 30 percent.
The raise in MPR, indicates that the MPC has increased the interest rate twice in two months.