To combat growing inflation, the Central Bank of Nigeria’s (CBN) policy-setting council increased the monetary policy rate (MPR), which measures interest rates, from 15.1 percent to 16.5 percent.
Due to rising food costs, Nigeria’s inflation rate last week hit a five-year high of 21.09 percent.
The MPC made the decision to keep tightening, although at a little slower pace, stating that doing so would reduce the negative real effective interest rate margin, enhance market sentiment, and further regain investor confidence.
Emefiele added that the constant tightening has had a variety of outcomes. Therefore, in order to accomplish the intended goals of stable pricing and consistent growth, the CBN governor pleaded with authorities to maintain harmonizing their varied policies.