CBN raises interest rate to 18.5%; highest in 22 years
The Central Bank of Nigeria at its just concluded Monetary Policy Committee (MPC) meeting raised its benchmark interest rate (MPR) by 50 basis points to 18.5 per cent, the country’s highest in 22 years.
The CBN governor, Godwin Emefiele, made this known during the post-MPC press conference on Wednesday.
In April 2023, headline inflation increased to 22.22 per cent from 22.04 per cent in the previous month, marking its highest level since September 2005.
This is the third time the Mr Emefiele led apex bank will be raising it’s interest rate in 2023.
Nigeria has struggled with a high rate of inflation as well as a declining exchange rate at both the parallel and official markets.
In April 2022, headline inflation reached its highest level in more than 17 years, eroding the purchasing power of the populace.
However, the apex bank has continued to increase the interest rate to combat the continued rising inflation.