The Monetary Policy Committee of the Central Bank of Nigeria raised the Monetary Policy Rate from 13 % to 14%.
This came barely two months after the MPC, during its bi-monthly meeting in May, raised the benchmark interest rate from 11.5% to 13%. The interest rate hike came barely one week after the National Bureau of Statistics put its June inflation figure for the economy at 18.6%; the highest in five years. Inflation had hit 17.71% in May, 2022.
The MPC had left the MPR unchanged for over two years. However crippling inflation, worsening purchasing power and their attendant effects on the economy appear; to have forced the CBN to effect policy changes. Emefiele, while disclosing that all other parameters were left constant said, “In summary, the MPC voted to increase the MPR from 13.0 to 14.0%; retain the asymmetric corridor at +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent; and retain the Liquidity Ratio at 30 per cent.”