The Monetary Policy Committee (MPC) of the Central Bank of Nigeria voted to increase the benchmark interest rate (MPR) by 100 basis points to 16.5%, the highest level since 2001.
This was announced by the Governor of CBN, Godwin Emefiele, when reading the statement of the last meeting of the MPC of the year on Tuesday, November 22, 2022.
During the meeting, the MPC noted that the tightening will help restore investor confidence while curbing the higher inflation rate.
Highlights of the Committee’s decision
- Increase the TPM by 100 basis points to 16.5%
- The asymmetric corridor of +100/-700 base points around the TPM was maintained
- CRR remained at 32.5%
- While the Liquidity Ratio also remained at 30%
Remember, the main bank had raised the MPR from 11.5% earlier this year to 15.5% in three consecutive rate hikes. Nairametrics also reported that Nigeria’s money supply increased to its highest level at N50.5 trillion at the end of October 2022, an increase of N1.26 trillion from the previous month.
Nigeria’s inflation rate rose to 21.09% in October 2022 from 20.77% the previous month, an indication of a further rise in the cost of goods and services, despite the CBN’s aggressive move in the last six months.
More details soon…
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