The Central Bank of Nigeria’s Monetary Policy Committee has decided to raise the benchmark interest rate by 25 basis points, bringing it to 18.75 per cent.
GOVIMA earlier reported that the MPC meeting would take place and the meeting always involve stakeholders and policymakers and it will explore avenues to strengthen the nation’s currency, tackle inflationary pressures, and ensure a robust and sustainable economic environment in line with the new administration’s economic policies
Reading the communique, The Acting CBN Governor, Folashodun Shonubi, disclosed this at the end of the fourth MPC meeting of the year on Tuesday.
He said, “In summary, the MPR voted to raise the policy rate by 25 basis points from 18.5 to 18.75 per cent.”
Addressing journalists at the end of the two-day meeting in Abuja, Mr. Shonubi said the committee voted to adjust the asymmetric corridor at +100 and -300 basis points around the MPR.
Analysts’ expectations had been divergent ahead of the first MPC meeting after the suspension of Godwin Emefiele as the governor of the CBN.
President Bola Ahmed Tinubu emphasized the need to lower interest rates to stimulate increased investment and consumer spending, thereby supporting the economy at a higher level.
Analysts had said that with the recent removal of fuel subsidy, the increase in energy prices, and the liberalisation of the exchange rate, inflationary pressure will no doubt persist unless the MPC considers options that will deal with the pressure aggressively
