The Central Bank of Nigeria’s Monetary Policy Committee unanimously voted to raise its monetary policy interest rates to 18.5%. The bank’s MPC voted in March to raise the benchmark interest rate by 50 basis points to 18%.
Godwin Emefiele, Governor of the Central Bank of Nigeria, stated this while reading the communiqué from the third MPC meeting of the year. Mr Emefiele told journalists at the conclusion of the two-day meeting in Abuja that the committee resolved to preserve the asymmetric corridor at +100 and -700 basis points around the MPR.
To justify the rising inflation rate, the MPC cited high energy costs and supply chain issues, among other factors that are outside the control of the MPC.
He added, “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.” Analysts in the country had predicted the CBN and the MPC might raise the lending rates at the end of the Monetary Policy Committee.
The apex bank had increased the MPR from 11.5 per cent earlier last year to 18 per cent in March this year across six consecutive rate hikes.