• Monday, July 15, 2024
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For first time in six years, CBN hikes rate to 13%

Money supply declined by 0.56% in August – CBN

For the first time in six years the Central Bank of Nigeria (CBN) increased its benchmark interest rate to 13 percent from 11.5 percent to curtail accelerating inflation.

The apex bank retained the asymmetric corridor around the MPR at +100 /-700 basis points, Cash Reserve Ratio (CRR) at 27.4 %, and Liquidity Ratio (LR) at 30%.

Nigeria’s inflation rose sharply to 16.82 percent in April 2022, as prices of both food and non -food items continued in an upward trend.

Read also: Bank stocks set to gain as Nigeria hikes interest rate for first time in 6yrs

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.

“It is not an easy decision but we have to focus on our core mandate,” he stated.

Details later