The Central Bank of Nigeria, CBN has raised the interest rate to 18.5% from 17.5% to tame rising inflation.
The Monetary Policy Committee (MPC) of the apex bank announced the decision on Wednesday at the end of its Monetary Policy Committee (MPC) meeting in Abuja.
The decision follows a steady rise in inflation rates in the country's economy and high energy costs.
Emefiele said the committee members voted to hike 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.
“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,” Emefiele said.
Recall that headline inflation rose to 22.22% in April 2023 from 22.04% recorded in the previous month.
This marks the third consecutive time the apex bank will raise the interest rate this year, representing the highest in over 22 years.