Central Bank of Nigeria Monetary Policy Committee (MPC) has increase the benchmark interest rate (MPR) by 100 basis points to 16.5%, the highest level since 2001. 

This was disclosed by the Governor of CBN, Godwin Emefiele, while reading the communique of the last MPC meeting of the year yesterday. 

During the meeting, the MPC noted that the tightening will help restore investors’ confidence whilst curbing higher rate of inflation. 

The committee unanimously voted to increase MPR by 100 basis points to 16.5%. The asymmetric corridor of +100/-700 basis points around the MPR was retained. CRR was retained at 32.5%. While the Liquidity Ratio was also kept at 30%.

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Nigeria’s inflation rate rose to 21.09% in October 2022 from 20.77% recorded in the previous month, an indication of a further rise in the cost of goods and services, despite the hawkish move by the CBN in the past six months.  

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