CBN hikes rate to 14 percent to curtail inflation

The Central Bank of Nigeria’s MPC has hiked interest rate to 14 percent to curtail inflation.

The move is targeted at curtailing surging inflation uptick.
The apex bank raised Monetary Policy Rate (MPR) by 100 basis points to 14percent, the second straight raise this year.

But it left the Cash Reserve Ratio (CRR) unchanged at 27.5 percent; Liquidity Ratio at 30 percent; and retained the asymmetric corridor of +100/-700 basis points around the MPR.

Nigeria’s inflation rose sharply to 18.6% in June 2022, the highest since January 2017 as prices of both food and non -food items continued in an upward trend.

According to CBN Governor, Godwin Emefiele who announced the decisions of the two days meeting of the Monetary Policy Committee (MPC), the apex bank is seriously worried about rising consumer prices and needed to take a drastic action to reverse it while equally supporting growth recovery.

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The announcement was made 1pm Tuesday.

CBN’s Monetary Policy Committee (MPC) commenced its fourth meeting of the year on Monday in Lagos instead of the Abuja office.

The meeting is coming after the MPC embarked on a retreat at the weekend to appraise its policies in the past.

In its last meeting in May 2022, the CBN raised its benchmark interest rate, known as the Monetary Policy Rate (MPR), by 150 basis points to 13 percent, the first time in six years.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.