Just in: CBN raises interest rate, highest in 20 years

The policy-setting committee of the Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), which measures interest rate, from 14 percent to 15.5 percent to tame rising inflation.

CBN NPC also voted to retain the asymmetric corridor at 100 and 700 basis points around NPR, cash research ratio increased to 32.5 percent.

In July, the interest rate was raised from 13 per cent to 1.

The monetary policy rate (MPR) is the baseline interest rate in an economy, every other interest rate used within an economy is built on it.

Addressing journalists on Tuesday after the committee’s meeting at the CBN headquarters in Abuja, Godwin Emefiele, governor of the apex bank, said 10 members of the committee voted for the rate hike.