Journalism of Courage

CBN increases interest rate to 16.5 % to tame inflation.

The Central Bank Governor, Mr Godwin Emefiele, disclosed this while reading the communique of the last MPC meeting of the year on Tuesday, November 22 , 2022.

The Monetary Policy Committee of the Apex bank voted on Tuesday to increase the benchmark interest rate by 100 basis point to 16.5 % , the highest since 2001 in a sustained push to control inflation and ease pressure on the Naira.

The Central Bank Governor, Mr Godwin Emefiele, disclosed this while reading the communique of the last MPC meeting of the year on Tuesday, November 22 , 2022.

He said previous increase was beginning to yield results, adding that “there is need to keep tightening”.

Persecondnews gathered that the Committee also retained the Cash Reserve Ratio ( CRR ) at 32.5 percent and voted to retain the asymmetric corridor at +100 and -700 basis points around the MPR.

The liquidity ratio was also retained at 30 percent.

In October, Nigeria’s inflation rate hit a 16 year high of 21.09 percent amid skyrocketing cost of goods and services, despite the CBN bold measures.

Also in October, CBN announced the redesigning of all major Naira notes and will by December 2022 start circulating them as part of measures to control money supply.

On Monday, the Naira appreciated to #775 per dollar at parallel section of the foreign exchange market, gaining at #15 or 1.9 percent compared to #790 it traded last Friday.

At the investors and exporters window, the Naira appreciated against dollar, exchanging at #445.38.

Persecondnews reports that of the 11 members of the Committee meeting, 10 members voted to increase the MPR by 100 basis points while one member voted for a reduction.

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