The Monetary Policy Rate (MPR), known as the interest rate, was increased by 150 basis points from 14 to 15. 5 percent by the Central Bank of Nigeria (CBN).
However, the apex bank maintained the Liquidity Ratio (LR) at 30%. The governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, spoke to journalists after the Monetary Policy Committee (MPC) meeting in Abuja and said that the most recent adjustments were a part of the bank’s aggressive efforts to combat inflation, which peaked at 20. 52 percent, year over year, in August.
The CBN governor on the increase in CRR and that it was to sweep up cash from bank vault; to fend against speculative attacks on the naira.
The CBN governor stated that following the recent release of $265 million to resolve the foreign exchange difficulties in the sector; the bank was to further assist in the aviation sector to settle unpaid ticket sales.