The Central Bank of Nigeria, CBN has raised the interest rate to 16.5 percent from 15.5 percent to tame rising inflation.
The Monetary Policy Committee (MPC) of the apex Bank announced the decision on Tuesday at the end of its bi-monthly meeting in Abuja.
CBN governor, Godwin Emefiele, who chaired the meeting, noted that MPC took the decision to moderately tighten the rates to ensure the gains of the past tightening were not eroded by listening or holding of the rates.
The inflation rate in Nigeria rose to 21.09% in October 2022 from 20.77% in September. This indicates that the costs of goods and services have increased further, despite the CBN's bold moves.
Out of the 11 members of the committee meeting, 10 members voted to increase the MPR by 100 basis points, and one member voted for a reduction.
