The Central Bank of Nigeria (CBN) has increased it’s Monetary Policy Rate, MPR to 18 per cent from 17.5 per cent.
Governor of the CBN, Mr. Godwin Emefiele, made this known, on Tuesday, after the meeting of the Monetary Policy Committee of the apex bank.
Mr. Emefiele said past increases in the interest rate had had a positive impact on the inflation rate.
The Monetary Policy Rate (MPR) is the rate at which banks lend money to one another and it is from it that banks derived the rates it loans money to the public.
Mr. Emefiele noted that further rate hikes will not affect the banking industry in Nigeria, and loosening the interest rate will affect the gains achieved so far.
According to Mr. Emefiele, 10 members of the MPC voted to raise the MPR by 50 basis points, leading to the MPC raising the interest rate to 18%.
