CBN Raises Interest Rate To 15.5% To Curb Rising Inflation

CBN Raises Interest Rate To 15.5% To Curb Rising Inflation

CBN Raises Interest Rate To 15.5% To Curb Rising Inflation. 

CBN Raises Interest Rate To 15.5% To Curb Rising Inflation

In a move to tame rising inflation, the policy-setting committee of the Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), which measures interest rate, from 14 percent to 15.5 percent.

This was revealed by CBN Governor Godwin Emefiele as he briefed the media following the end of the monetary policy committee, MPC’s meeting.

The MPC voted to increase interest rates to a whopping 15.5% as the apex bank battles rising inflation amidst a fiscal crisis.

Addressing journalists on Tuesday after the committee’s meeting at the CBN headquarters in Abuja, Godwin Emefiele, governor of the apex bank, said 10 members of the committee voted for the rate hike.

The Governor thereafter warned commercial banks to fund their accounts immediately, stating that any bank that fails to fund their bank accounts will be denied access to the foreign exchange market.

The Central Bank of Nigeria also stated that it will implement aggressive cash reserve requirement “CRR” measures by mopping up liquidity from commercial banks latest, Thursday.

The apex bank believes increased liquidity is one of the major reasons why the exchange rate has been depreciating.

In July, the interest rate was raised from 13 percent to 14 percent.

The monetary policy rate (MPR) is the baseline interest rate in an economy, every other interest rate used within an economy is built on it.

In August, Nigeria’s inflation rate rose to a nearly two-decade high at 20.52%.

Source | Choc news


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